ISLAMABAD: Federal Board of Revenue (FBR) has updated salary tax card for tax year 2022-2023.
The FBR issued latest withholding income tax rates for tax year 2022-2023 updated up to June 30, 2022 after making changes to Income Tax Ordinance, 2001, which was amended through Finance Act, 2022.
The rates of tax applicable on salaried individuals imposed through Section 149 of the Income Tax Ordinance, 2001.
Every person responsible for paying salary to an employee is required to deduct tax from the amount paid.
The deduction rate of withholding tax on salaried persons is same for persons falling in Active Taxpayers List (ATL) and non-ATL.
FOLLOWING IS THE TAX CARD FOR SALARIED PERSONS FOR TAX YEAR 2022-2023
|Taxable Income||Rate of Tax|
|Up to Rs600,000||0%|
|Rs600,001 –1,200,000||2.5% of amount exceeding Rs600,000|
|Rs1,200,001 –2,400,000||Rs15,000 + 12.5% of amount exceeding Rs1,200,000|
|Rs2,400,001 –3,600,000||Rs165,000 + 20% of amount exceeding Rs2,400,000|
|Rs3,600,001 –6,000,000||Rs405,000 + 25% of amount exceeding Rs3,600,000|
|Rs6,000,001 –12,000,000||Rs1,005,000 + 32.5% of amount exceeding Rs6,000,000|
|Amount exceeding Rs12,000,000||Rs2,955,000 + 35% of amount exceeding Rs12,000,000|
The rate of tax in the table above are applicable where the income of an individual chargeable under the head ‘salary’ exceeds seventy-five per cent of his/her taxable income.