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Salary Tax Rates for year 2021-2022

Taxation

ISLAMABAD: The Finance Bill 2021 has not proposed changes to tax rates and slabs for salaried persons for tax year 2022, sources in Federal Board of Revenue (FBR) said.

Therefore tax rate and slabs will remain unchanged for tax year starting from July 01, 2021.

Following is the table for tax rates on taxable income of salaried persons prevailed during tax year 2021:

Where the income of an individual chargeable under the head “salary” exceeds seventy-five per cent of his taxable income, the rates of tax to be applied shall be as set out in the following table, namely:—

S. No.Taxable incomeRate of tax
(1)(2)(3)
1.Where taxable income does not exceed Rs. 600,0000%
2.Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,0005% of the amount exceeding Rs. 600,000
3.Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000Rs. 30,000 plus 10% of the amount exceeding Rs. 1,200,000
4.Where taxable income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000Rs. 90,000 plus 15% of the amount exceeding Rs. 1,800,000
5.Where taxable income exceeds Rs.2,500,000 but does not exceed Rs. 3,500,000Rs. 195,000 plus 17.5% of the amount exceeding Rs. 2,500,000
6.Where taxable income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000Rs. 370,000 plus 20% of the amount exceeding Rs. 3,500,000
7.Where taxable income exceeds Rs. 5,000,000 but does not exceeds Rs. 8,000,000Rs. 670,000 plus 22.5% of the amount exceeding Rs. 5,000,000
8.Where taxable income exceeds Rs. 8,000,000 but does not exceeds Rs. 12,000,000Rs. 1,345,000 plus 25% of the amount exceeding Rs. 8,000,000
9.Where taxable income exceeds Rs. 12,000,000 but does not exceeds Rs. 30,000,000Rs. 2,345,000 plus 27.5% of the amount exceeding Rs. 12,000,000
10.Where taxable income exceeds Rs. 30,000,000 but does not exceeds Rs. 50,000,000Rs. 7,295,000 plus 30% of the amount exceeding Rs. 30,000,000
11.Where taxable income exceeds Rs. 50,000,000 but does not exceeds Rs. 75,000,000Rs. 13,295,000 plus 32.5% of the amount exceeding Rs. 50,000,000
12.Where taxable income exceeds Rs. 75,000,000Rs. 21,420,000 plus 35% of the amount exceeding Rs. 75,000,000]

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