ISLAMABAD: Federal Board of Revenue (FBR) has updated withholding tax on rental income from immovable properties for tax year 2021.
The FBR updated the withholding tax card 2020-2021 after incorporating amendments to Income Tax Ordinance, 2001 made through Finance Act, 2020.
The FBR said that every prescribed persons as per Section 155 of Income Tax Ordinance, 2001 shall collect / deduct withholding tax from recipient of rent of immovable property at the time the rent is actually paid.
Section 155: Income from Property
Any payment made on account of rent of immovable property
(A) In case of individual or AOP
1. Where the gross amount of rent does not exceed Rs, 200,000: the tax rate shall be zero
2. Where the gross amount of rent exceeds Rs, 200,000 but does not exceed Rs, 600,000: 5 percent of the gross amount exceeding Rs, 200,000
3. Where the gross amount of rent exceeds Rs, 600,000 but does not exceed Rs, 1,000,000: Rs, 20,000+10 percent of the gross amount exceeding Rs, 600,000
4. Where the gross amount of rent exceeds Rs, 1,000,000 but does not exceed Rs, 2,000,000: Rs,60,000+15 percent of the gross amount exceeding Rs, 1,000,000
5. Where the gross amount of rent exceeds Rs, 2,000,000 but does not exceed Rs. 4,000,000: Rs, 210,000+20 percent of the gross amount exceeding Rs, 2,000,000
6. Where the gross amount of rent exceeds Rs.4,000,000 but does not exceeds Rs. 6,000,000: Rs.610,000 plus 25 per cent of the gross amount exceeding Rs.4,000,000
7. Where the gross amount of rent exceeds Rs.6,000,000 but does not exceeds Rs. 8,000,000: Rs.1,110,000 plus 30 per cent of the gross amount exceeding Rs.6,000,000
8. Where the gross amount of rent exceeds Rs.8,000,000: Rs.1,710,000 plus 35 percent of the gross amount exceeding Rs.8,000,000
B) in case of company: 15 percent
The tax shall be adjustable against total tax liability.
Comments
9 responses to “FBR updates withholding tax rates for income from property”
I am an individual. Rent is Rs. 303,600 per year. Am I liable to deduct the WHT at source?
At 200000 rent WHT is 0
Rent over 200000 rent is 5 %
Till 600000
Treatment of WHT on rent if the rent is paid in advance for 3 years in lump sum?
Is the deduction of WHT made by Tenant vide payment invoice suffice obligation of Property Owner?
RENT 200000/m, what %ge WHT tenant should deduct on paying rent on two month advance rent,
Paying rent for two months and Deducting WHT per FBR slab on 12 month rent what extent it is fair
You are not liable to deduct WHT on the said rent
Sir, please tell me that which forum i can use to pay rental tax online?
Receiving rent from Oct 2012 till date from which year do I need to pay income tax