FBR issues salary tax card for Tax Year 2020

FBR issues salary tax card for Tax Year 2020

KARACHI: Federal Board of Revenue (FBR) has issued salary tax card for tax year 2020 after incorporating changes brought through Finance Act, 2019 to Income Tax Ordinance, 2001.

The FBR issued Income Tax Ordinance, 2001 updated till June 30, 2019 under which tax rates for salary persons would be applicable from July 01, 2019 to June 30, 2020

The FBR said that there the income of an individual chargeable under the head “salary” exceeds seventy-five per cent of his taxable income, the rates of tax to be applied shall be as set out in the following table, namely:

S. No.Taxable incomeRate of tax
(1)(2)(3)
1.Where taxable income does not exceed Rs. 600,0000%
2.Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,0005% of the amount exceeding Rs. 600,000
3.Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000Rs. 30,000 plus 10% of the amount exceeding Rs. 1,200,000
4.Where taxable income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000Rs. 90,000 plus 15% of the amount exceeding Rs. 1,800,000
5.Where taxable income exceeds Rs.2,500,000 but does not exceed Rs. 3,500,000Rs. 195,000 plus 17.5% of the amount exceeding Rs. 2,500,000
6.Where taxable income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000Rs. 370,000 plus 20% of the amount exceeding Rs. 3,500,000
7.Where taxable income exceeds Rs. 5,000,000 but does not exceeds Rs. 8,000,000Rs. 670,000 plus 22.5% of the amount exceeding Rs. 5,000,000
8.Where taxable income exceeds Rs. 8,000,000 but does not exceeds Rs. 12,000,000Rs. 1,345,000 plus 25% of the amount exceeding Rs. 8,000,000
9.Where taxable income exceeds Rs. 12,000,000 but does not exceeds Rs. 30,000,000Rs. 2,345,000 plus 27.5% of the amount exceeding Rs. 12,000,000
10.Where taxable income exceeds Rs. 30,000,000 but does not exceeds Rs. 50,000,000Rs. 7,295,000 plus 30% of the amount exceeding Rs. 30,000,000
11.Where taxable income exceeds Rs. 50,000,000 but does not exceeds Rs. 75,000,000Rs. 13,295,000 plus 32.5% of the amount exceeding Rs. 50,000,000
12.Where taxable income exceeds Rs. 75,000,000Rs. 21,420,000 plus 35% of the amount exceeding Rs. 75,000,000]

Leave a Reply

You have to agree to the comment policy.