ISLAMABAD: The government has withdrawn tax incentives to salary persons and introduces massive changes in the tax card for salaried persons through Finance Bill 2019.
The tax exempt salary income has been increased from Rs400,000 to Rs600,00 for tax year 2020.
For salaried individuals deriving income exceeding Rs.600,000, eleven taxable slabs with progressive tax rates ranging from 5% to 35% are being introduced as under:-
Rate of Tax
|01||Where taxable income does not exceed Rs600,000||0%|
|02||Where taxable income exceeds Rs600,000 but does not exceed Rs1,200,000||5% of the amount exceeding Rs600,000|
|03||Where taxable income exceeds Rs1,200,000 but does not exceed Rs1,800,000||Rs30,000 plus 10% of the amount exceeding Rs. 1,200,000|
|04||Where taxable income exceeds Rs1,800,000 but does not exceed Rs2,500,000||Rs90,000 plus 15% of the amount exceeding Rs. 1,800,000|
|05||Where taxable income exceeds Rs2,500,000 but does not exceed Rs3,500,000||Rs195,000 plus 17.5% of the amount exceeding Rs.2,500,000|
|06||Where taxable income exceeds Rs3,500,000 but does not exceed Rs5,000,000||Rs370,000 plus 20% of the amount exceeding Rs3,500,000|
|07||Where taxable income exceeds Rs5,000,000 but does not exceed Rs8,000,000||Rs670,000 plus 22.5% of the amount exceeding Rs5,000,000|
|08||Where taxable income exceeds Rs8,000,000 but does not exceed Rs12,000,000||Rs1,345,000 plus 25% of the amount exceeding Rs8,000,000|
|09||Where taxable income exceeds Rs12,000,000 but does not exceed Rs30,000,000||Rs2,345,000 plus 27.5% of the amount exceeding Rs12,000,000|
|10||Where taxable income exceeds Rs30,000,000 but does not exceed Rs50,000,000||Rs7,295,000 plus 30% of the amount exceeding Rs30,000,000|
|11||Where taxable income exceeds Rs50,000,000 but does not exceed Rs75,000,000||Rs13,295,000 plus 32.5% of the amount exceeding Rs50,000,000|
|12||Where taxable income exceeds Rs75,000,000||Rs21,420,000 plus 35% of the amount exceeding Rs75,000,000″;|