New tax slabs for property income proposed

New tax slabs for property income proposed

ISLAMABAD: The Finance Bill 2021 has proposed amendment to the withholding tax slab rates applicable in case of withholding agents other than company on account of payment of rent of immovable property under Section 155 of the Income Tax Ordinance, 2001.

Following are the proposed rates are:

Gross amount of rent:

01. Where the gross amount of rent not exceeding Rs300,000: the tax rate shall be zero

02. Where the gross amount of rent not exceeding Rs300,000 but does not exceed Rs600,000: 5 per cent of the gross amount exceeding Rs300,000

03. Where the gross amount of rent not exceeding Rs600,000 but does not exceed Rs2,000,000: Rs15,000 + 10 per cent of the gross amount exceeding Rs600,000

04. Where the gross amount of rent exceed Rs2,000,000: Rs155,000 + 25 per cent of the gross amount exceeding Rs2,000,000.

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