Karachi – Members of the newly formed Salaried Class Alliance staged a protest in Karachi on Tuesday, July 22, 2024, denouncing the increased tax burden imposed on salaried individuals in the recently unveiled budget.
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Salary tax card – updated for Tax Year 2019
KARACHI: Federal Board of Revenue (FBR) has updated tax rate for salary persons as per Finance Supplementary (Second Amendment) Act, 2019.
The tax card is updated up to March 09, 2019.
The FBR said that persons responsible for paying salary are required to collect tax from employees under Section 149 of Income Tax Ordinance, 2001 at the time salary is actually paid.
Every person responsible for paying Salary to an employee shall deduct tax from the amount paid:
1. Where the taxable income does not exceed Rs, 400,000: Zero percent
2. Where the taxable income exceeds Rs, 400,000 but does not exceed Rs, 800,000: Rs1,000
3. Where the taxable income exceeds Rs, 800,000 but does not exceed Rs, 1,200,000: Rs2,000
4. 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.
5. Where the taxable income exceeds Rs, 2,500,000 but does not exceed Rs, 4,000,000: Rs, 65,000/- + 15 percent of the amount exceeding Rs. 2,500,000.
6. Where the taxable income exceeds Rs, 4,000,000 but does not exceed Rs, 8,000,000: Rs. 290,000/- + 20 percent of the amount exceeding Rs. 4,000,000.
7. Where the taxable income exceeds Rs, 8,000,000: Rs. 1,090,000/- + 25 percent of the amount exceeding Rs. 4,800,000.
Provided that where the taxable income exceeds Rs. 800,000/- the minimum tax payable shall be Rs.2,000/-
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Tax rates for salary, business individuals
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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