FBR updates withholding tax card for salary income

ISLAMABAD: Federal Board of Revenue (FBR) has issued updated withholding tax card for salary income to be prevailed during Tax Year 2021 (2020-2021).

The FBR issued the withholding tax card 2020-2021 (updated up to June 30, 2020) after incorporating amendment made to Income Tax Ordinance, 2001 through Finance Act, 2020.

According to the withholding tax card, every person responsible for paying salary to an employee shall deduct tax from the amount paid under Section 149 of Income Tax Ordinance, 2001 as per given rates:

Salary slabsTax Rates on salary slabs
01. Where taxable income does not exceeds Rs600,0000 percent
02. Where taxable income exceeds Rs600,000 but does not exceed Rs1,200,0005 percent of the amount exceeding Rs600,000
03. Where taxable income exceeds Rs1,200,000 but does not exceeds Rs1,800,000Rs30,000 plus 10 percent of the amount exceeding Rs1,200,000
04. Where taxable income exceeds Rs1,800,000 but does not exceed Rs2,500,000Rs90,000 plus 15 percent of the amount exceeding Rs1,800,000
05. Where taxable income exceeds Rs2,500,000 but does not exceed Rs3,500,000Rs195,000 plus 17.5 percent of the amount exceeding Rs2,500,000
06. where taxable income exceeds Rs3,500,000 but does not exceed Rs5,000,000Rs370,000 plus 20 percent of the amount exceeding Rs3,500,000
07. Where taxable income exceeds Rs5,000,000 but does not exceed Rs8,000,000Rs670,000 plus 22.5 percent of the amount exceeding Rs5,000,000
08. where taxable income exceeds Rs8,000,000 but does not exceeds Rs12,000,000Rs1,345,000 plus 25 percent of the amount exceeding Rs8,000,000
09. Where taxable income exceeds Rs12,000,000 but does not exceed Rs30,000,000Rs2,345,000 plus 27.5 percent of the amount exceeding Rs12,000,000
10. Where taxable income exceeds Rs30,000,000 but does not exceed Rs50,000,000Rs7,295,000 plus 30 percent of the amount exceeding Rs30,000,000
11. Where taxable income exceeds Rs50,000,000 but does not exceed Rs75,000,000Rs13,295,000 plus 32.5 percent of the amount exceeding Rs50,000,000
12. Where taxable income exceeds Rs75,000,000Rs21,420,000 plus 35 percent of the amount exceeding Rs75,000,000

The FBR further said that under Section 149(3) of the Ordinance, every person responsible for making payment for directorship fee for fee for attending board meeting or such fee by whatever name called shall deduct 20 percent of the gross amount paid.

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