Income Tax Ordinance 2001: tax rates for salary, business individuals

KARACHI: Following are the tax rates for individuals under First Schedule of Income Tax Ordinance, 2001.

The tax rate as updated through Finance Supplementary (Amendment) Act, 2018 to Income Tax Ordinance, 2001, issued by Federal Board of Revenue (FBR).

Rates of tax for individuals

(1) The rates of tax imposed on the taxable income of every individual, not being an individual to which paragraph (1A) of this Division applies, shall be as set out in the following table, namely:—

Table

S. No. Taxable Income Rate of Tax
01 Where the taxable income does not exceed Rs. 400,000 0 percent
02 Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 800,000 Rs1,000
03 Where the taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000 Rs2,000
04 Where the taxable income exceeds Rs.1,200,000 but does not exceed Rs. 2,400,000 5 percent of the amount exceeding Rs. 1,200,000
05 Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000 60,000 + 15 percent of the amount exceeding Rs. 2,400,000
06 Where the taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000 150,000 + 20 percent of the amount exceeding Rs. 3,000,000
07 Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 5,000,000 350,000 + 25 percent of the amount exceeding Rs. 4,000,000
08 Where the taxable income exceeds Rs. 5,000,000

 

600,000 + 29 percent of the amount exceeding Rs. 5,000,000

Provided that where the taxable income exceeds eight hundred thousand rupees the minimum tax payable shall be two thousand rupees.

Salary persons

(1A) Where the income of an individual chargeable under the head “salary” exceeds fifty per cent of his taxable income, the rates of tax to be applied shall be as set out in the following table, namely:—

Table

S.No. Taxable Income Rate of Tax
01 Where the taxable income does not exceed Rs. 400,000 0 percent
02 Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 800,000 Rs1,000
03 Where the taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000 Rs2,000
04 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
05 Where the taxable income exceeds Rs.2,500,000 but does not exceed Rs. 4,000,000 65,000 + 15 percent of the amount exceeding Rs. 2,500,000
06 Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 8,000,000 290,000 + 20 percent of the amount exceeding Rs. 4,000,000
07 Where the taxable income exceeds Rs. 8,000,000 1,090,000 + 25 percent of the amount exceeding Rs. 8,000,000

Provided that where the taxable income exceeds eight hundred thousand rupees the minimum tax payable shall be two thousand rupees.

Related Stories

Income Tax Ordinance 2001: advance tax on paying education fee abroad

Income Tax Ordinance 2001: advance tax on dealers, commission agents

Income Tax Ordinance 2001: return filers can claim tax adjustment paid on educational fee

Income Tax Ordinance 2001: Advance tax on sales to distributors, dealers and wholesalers

Income Tax Ordinance 2001: advance tax on electronic media, cable operators

Leave a Reply

You have to agree to the comment policy.