* Last updated: 01 July 2024.
Introduction
For non-salaried individuals and Association of Persons (AOPs), it’s essential to understand the updated income tax rates. These rates have been revised for the tax year 2025 under the Income Tax Ordinance, 2001, amended till June 30, 2024. This blog will guide you through the new tax slabs and provide a tax calculator specifically designed for non-salaried individuals and AOPs.
Updated Tax Rates for Non-Salaried Individuals and AOPs
Here are the new tax rates for non-salaried individuals and AOPs for the tax year 2025:
| Taxable Income (Rs.) | Tax Rate |
|---|---|
| Up to Rs. 600,000 | 0% |
| Rs. 600,001 to Rs. 1,200,000 | 15% on the amount exceeding Rs. 600,000 |
| Rs. 1,200,001 to Rs. 1,600,000 | Rs. 90,000 + 20% on the amount exceeding Rs. 1,200,000 |
| Rs. 1,600,001 to Rs. 3,200,000 | Rs. 170,000 + 30% on the amount exceeding Rs. 1,600,000 |
| Rs. 3,200,001 to Rs. 5,600,000 | Rs. 650,000 + 40% on the amount exceeding Rs. 3,200,000 |
| Over Rs. 5,600,000 | Rs. 1,610,000 + 45% on the amount exceeding Rs. 5,600,000 |
For AOPs that are professional firms prohibited from incorporating by law, the highest tax rate (over Rs. 5,600,000) is reduced from 45% to 40%.
Simplify Your Tax Calculations with Our Calculator
For non-salaried individuals and AOPs, calculating tax can be time-consuming. We’ve made it easy with our automated tax calculator. Just enter your monthly earnings and the calculator will:
- Estimate your annual taxable income.
- Display your monthly and yearly tax amounts based on the updated tax slabs.
Why It’s Important to Know Your Tax Obligations
- Prevent Overpaying: Accurately calculate your taxes to ensure you’re not paying more than you should.
- Avoid Penalties: Timely payments and correct filings help you avoid legal issues.
- Plan Your Savings: Knowing your tax liabilities lets you plan for potential savings and deductions.