Salary tax slab of above Rs800,000 to pay Rs2,000 as minimum tax

Salary tax slab of above Rs800,000 to pay Rs2,000 as minimum tax

ISLAMABAD: Federal Board of Revenue (FBR) has said that salary individuals having taxable income above Rs800,000 to Rs12,000 shall pay Rs2,000 as minimum tax for Tax Year 2019.

According to latest withholding tax card for Tax Year 2019, the FBR said that where the taxable income exceeds Rs800,000 the minimum tax payable shall be Rs2,000.


Tax experts explained that the minimum tax is a mandatory payment irrespective the adjustment is more than the payable tax in a tax year.
The FBR updated the tax rates for salary persons for tax year that are amended through Finance Supplementary Act, 2018 to Section 149 of Income Tax Ordinance, 2001.


Employers are responsible for collecting / deducting the tax at the time of paying salary to employees from the amount paid at following rates:


01. Where the taxable income tax does not exceed Rs400,000: zero percent


02. Where the taxable income exceeds Rs400,000 but does not exceed Rs800,000: Rs1,000


03. Where the taxable income exceeds Rs800,000 but does not exceed Rs1.2 million: Rs2,000


04. Where the taxable income exceeds Rs1.2 million but does not exceed Rs2.5 million: 5 percent of the amount exceeding Rs2,000


05. Where the taxable income exceeds Rs2.5 million but does not exceed Rs4 million: Rs65,000 + 15 percent of the amount exceeding Rs2.5 million


06. Where the taxable income exceeds Rs4 million but does not exceed Rs8 million: Rs290,000 + 20 percent of the amount exceeding Rs4 million


07. Where the taxable income exceeds Rs8 million: Rs1.09 million + 25 percent of the amount exceeding Rs8 million


The FBR said that above rates will be applicable in case the head salary income above fifty percent of taxable income of a person.

Leave a Reply

You have to agree to the comment policy.