ISLAMABAD: Federal Board of Revenue (FBR) has issued tax rates to be applicable on business individuals and Association of Persons (AOPs) during tax year 2021.
The FBR issued Income Tax Ordinance, 2001 (updated June 30, 2020) incorporating amendment brought through Finance Act, 2020.
The FBR said that the rates of tax imposed on income of every individual and association of persons except a salaried individual shall be as set out in the following Table, namely:—
| S. No. | Taxable income | Rate of tax |
| (1) | (2) | (3) |
| 1. | Where taxable income does not exceed Rs. 400,000 | 0% |
| 2. | Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 600,000 | 5% of the amount exceeding Rs. 400,000 |
| 3. | Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 | Rs. 10,000 plus 10% of the amount exceeding Rs. 600,000 |
| 4. | Where taxable income exceeds Rs.1,200,000 but does not exceed Rs. 2,400,000 | Rs. 70,000 plus 15% of the amount exceeding Rs. 1,200,000 |
| 5. | Where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000 | Rs. 250,000 plus 20% of the amount exceeding Rs. 2,400,000 |
| 6. | Where taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000 | Rs. 370,000 plus 25% of the amount exceeding Rs. 3,000,000 |
| 7. | Where taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 6,000,000 | Rs. 620,000 plus 30% of the amount exceeding Rs. 4,000,000 |
| 8. | Where taxable income exceeds Rs. 6,000,000 | Rs. 1,220,000 plus 35% of the amount exceeding Rs. 6,000,000 |
