FBR issues salary income tax rates for return filing 2023

KARACHI: Federal Board of Revenue (FBR) has issued salary income tax rates for filing return tax year 2023.

Sources said that the FBR issued the tax rates for salaried persons to be applicable for filing annual tax returns.

The income tax return filing for tax year 2023 for salaried persons is due on September 30, 2023.

Under Section 114 of Income Tax Ordinance, 2001 every person (other than a company) whose taxable income for the year exceeds the maximum amount that is not chargeable to tax under this Ordinance for the year.

As per the ordnance the threshold income for salaried persons for chargeable to tax is above Rs600,000.

Following are the tax rates applicable for tax year 2023:

1. Where taxable income does not exceed Rs. 600,000: the tax rate is Rs. 0.

2. Where taxable income exceeds Rs.600,000 but does not exceed Rs.1,200,000: the tax rate is 2.5 per cent of the amount exceeding Rs. 600,000.

3. Where taxable income exceeds Rs.1,200,000 but does not exceed Rs.2,400,000: the tax rate is Rs. 15,000 + 12.5 per cent of the amount exceeding Rs.1,200,000.

4. Where taxable income exceeds Rs.2,400,000 but does not exceed Rs.3,600,000: the tax rate is Rs. 165,000 + 20 per cent of the amount exceeding Rs.2,400,000.

5. Where taxable income exceeds Rs.3,600,000 but does not exceed Rs.6,000,000: the tax rate is Rs. 405,000 + 25 per cent of the amount exceeding Rs.3,600,000.

6. Where taxable income exceeds Rs.6,000,000 but does not exceed Rs.12,000,000: the tax rate is Rs. 1,005,000 + 32.5% of the amount exceeding Rs.6,000,000.

7. Where taxable income exceeds Rs.12,000,000: the tax rate is Rs. 2,955,000 + 35 per cent of the amount exceeding Rs. 12,000,000.

NOTE: The rates given above are presented as given in the tax laws. PKRevenue.com is not responsible for any typo error or mistake in the tax rates.