Salary tax card – updated for Tax Year 2019

KARACHI: Federal Board of Revenue (FBR) has updated tax rate for salary persons as per Finance Supplementary (Second Amendment) Act, 2019.

The tax card is updated up to March 09, 2019.

The FBR said that persons responsible for paying salary are required to collect tax from employees under Section 149 of Income Tax Ordinance, 2001 at the time salary is actually paid.

Every person responsible for paying Salary to an employee shall deduct tax from the amount paid:

1. Where the taxable income does not exceed Rs, 400,000: Zero percent

2. Where the taxable income exceeds Rs, 400,000 but does not exceed Rs, 800,000: Rs1,000

3. Where the taxable income exceeds Rs, 800,000 but does not exceed Rs, 1,200,000: Rs2,000

4. Where the taxable income exceeds Rs, 1,200,000 but does not exceed Rs, 2,500,000: 5 percent of the amount exceeding Rs, 1,200,000.

5. Where the taxable income exceeds Rs, 2,500,000 but does not exceed Rs, 4,000,000: Rs, 65,000/- + 15 percent of the amount exceeding Rs. 2,500,000.

6. Where the taxable income exceeds Rs, 4,000,000 but does not exceed Rs, 8,000,000: Rs. 290,000/- + 20 percent of the amount exceeding Rs. 4,000,000.

7. Where the taxable income exceeds Rs, 8,000,000: Rs. 1,090,000/- + 25 percent of the amount exceeding Rs. 4,800,000.

Provided that where the taxable income exceeds Rs. 800,000/- the minimum tax payable shall be Rs.2,000/-

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