Tax rates on income from property during tax year 2022

Tax rates on income from property during tax year 2022

The rate of tax on income from property for the tax year 2022 has been provided under the First Schedule of the Income Tax Ordinance, 2001.

The Federal Board of Revenue (FBR) issued the Income Tax Ordinance, 2001 updated up to June 30, 2021. The Ordinance incorporated amendments brought through Finance Act, 2021.

Following are the tax rates on Income from Property:

(a) The rate of tax to be deducted under section 155, in the case of individual and association of persons, shall be—

1. Where the gross amount of rent does not exceed Rs.300,000, there shall be no income tax.

2. Where the gross amount of rent exceeds Rs.300,000 but does not exceed Rs.600,000, the tax rate shall be 5 per cent of the gross amount exceeding Rs.300,000.

3. Where the gross amount of rent exceeds Rs.600,000 but does not exceed Rs.2,000,000, the tax rate shall be Rs.15,000 plus 10 per cent of the gross amount exceeding Rs.600,000.

4. Where the gross amount of rent exceed Rs.2,000,000, the tax rate shall be Rs.155,000 plus 25 per cent of the gross amount exceeding Rs.2,000,000.

(b) The rate of tax to be deducted under section 155, in the case of company shall be 15 per cent of the gross amount of rent.

(Disclaimer: The text of above section is only for information. Team PkRevenue.com makes all efforts to provide the correct version of the text. However, the team PkRevenue.com is not responsible for any error or omission.)

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