Tax slabs increased for rental income from properties

KARACHI: The government has revised tax slabs for rental income from property to eight from five.

Experts at Deloitte Pakistan Chartered Accountants said that the Finance Bill 2019, proposed the increase in the number of tax slabs from five to eight.

Three new tax slabs are proposed for income exceeding Rs4,000,000 to match the maximum rate with that of the individual tax rates.

Rates of tax on income from property, based on the finance bill, shall be as follows:

 

S. No. Gross Amount of Rent Rate of Tax
1. Where the gross amount of rent does not exceed Rs.200,000. Nil
2. Where the gross amount of rent exceeds Rs.200,000 but does not exceed Rs. 600,000. 5 per cent of the amount exceeding Rs. 200,000.
3. Where the gross amount of rent exceeds Rs.600,000 but does not exceed Rs. 1,000,000. Rs. 20,000 plus 10 per cent of the amount exceeding Rs. 600,000.
4. Where the gross amount of rent exceeds Rs.1,000,000 but does not exceed Rs. 2,000,000. Rs. 60,000 plus 15 per cent of the amount exceeding Rs. 1,000,000.
5. Where the gross amount of rent exceeds Rs.2,000,000 but does not exceed Rs. 4,000,000. Rs. 210,000 plus 20 per cent of the amount exceeding Rs. 2,000,000.
6. Where the gross amount of rent exceeds Rs.4,000,000 but does not exceed Rs. 6,000,000. Rs. 610,000 plus 25 per cent of the amount exceeding Rs. 4,000,000.
7. Where the gross amount of rent exceeds Rs.6,000,000 but does not exceed Rs. 8,000,000. Rs. 1,110,000 plus 30 per cent of the amount exceeding Rs. 6,000,000.
8. Where the gross amount of rent exceeds Rs. 8,000,000. Rs. 1,710,000 plus 35 per cent of the amount exceeding Rs. 8,000,000.
(Visited 6,605 times, 79 visits today)

Leave a Reply

You have to agree to the comment policy.