KARACHI: Following are the tax rates for individuals under First Schedule of Income Tax Ordinance, 2001.
The tax rate as updated through Finance Supplementary (Amendment) Act, 2018 to Income Tax Ordinance, 2001, issued by Federal Board of Revenue (FBR).
Rates of tax for individuals
(1) The rates of tax imposed on the taxable income of every individual, not being an individual to which paragraph (1A) of this Division applies, shall be as set out in the following table, namely:—
Table
| S. No. | Taxable Income | Rate of Tax |
| 01 | Where the taxable income does not exceed Rs. 400,000 | 0 percent |
| 02 | Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 800,000 | Rs1,000 |
| 03 | Where the taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000 | Rs2,000 |
| 04 | Where the taxable income exceeds Rs.1,200,000 but does not exceed Rs. 2,400,000 | 5 percent of the amount exceeding Rs. 1,200,000 |
| 05 | Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000 | 60,000 + 15 percent of the amount exceeding Rs. 2,400,000 |
| 06 | Where the taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000 | 150,000 + 20 percent of the amount exceeding Rs. 3,000,000 |
| 07 | Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 5,000,000 | 350,000 + 25 percent of the amount exceeding Rs. 4,000,000 |
| 08 | Where the taxable income exceeds Rs. 5,000,000 | 600,000 + 29 percent of the amount exceeding Rs. 5,000,000 |
Provided that where the taxable income exceeds eight hundred thousand rupees the minimum tax payable shall be two thousand rupees.
Salary persons
(1A) Where the income of an individual chargeable under the head “salary” exceeds fifty per cent of his taxable income, the rates of tax to be applied shall be as set out in the following table, namely:—
Table
| S.No. | Taxable Income | Rate of Tax |
| 01 | Where the taxable income does not exceed Rs. 400,000 | 0 percent |
| 02 | Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 800,000 | Rs1,000 |
| 03 | Where the taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000 | Rs2,000 |
| 04 | Where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,500,000 | 5 percent of the amount exceeding Rs. 1,200,000 |
| 05 | Where the taxable income exceeds Rs.2,500,000 but does not exceed Rs. 4,000,000 | 65,000 + 15 percent of the amount exceeding Rs. 2,500,000 |
| 06 | Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 8,000,000 | 290,000 + 20 percent of the amount exceeding Rs. 4,000,000 |
| 07 | Where the taxable income exceeds Rs. 8,000,000 | 1,090,000 + 25 percent of the amount exceeding Rs. 8,000,000 |
Provided that where the taxable income exceeds eight hundred thousand rupees the minimum tax payable shall be two thousand rupees.
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