TAX YEAR 2021: tax rates on income from property

ISLAMABAD: Federal Board of Revenue (FBR) has updated rates of tax on income from property to be applicable during tax year 2021 (July 01, 2020 to June 30, 2021).

The FBR issued Income Tax Ordinance, 2001 (updated till June 30, 2020) incorporating amendments brought through Finance Act, 2020. Through the ordinance, the FBR updated the rate of tax to be paid under section 15, in the case of individual and association of persons, shall be as follows:-

S.No.Gross amount of rentRate of tax
(1)(2)(3)
1.Where the gross amount of rent does not exceed Rs.200,000.Nil
2.Where the gross amount of rent exceeds Rs.200,000 but does not exceed Rs.600,000.5 per cent of the gross amount exceeding Rs.200,000.
3.Where the gross amount of rent exceeds Rs.600,000 but does not exceed Rs.1,000,000.Rs.20,000 plus 10 per cent of the gross amount exceeding Rs.600,000.
4.Where the gross amount of rent exceeds Rs.1,000,000 but does not exceed Rs. 2,000,000.Rs.60,000 plus 15 per cent of the gross amount exceeding Rs1,000,000.
5.Where the gross amount of rent exceeds Rs.2,000,000 but does not exceed Rs. 4,000,000.Rs.210,000 plus 20 per cent of the gross amount exceeding Rs.2,000,000
6.Where the gross amount of rent exceeds Rs. 4,000,000 but does not exceed Rs. 6,000,000Rs.610,000 plus 25 per cent of the gross amount exceeding Rs.4,000,000
7.Where the gross amount of rent exceeds Rs. 6000,000 but does not exceeds Rs. 8,000,000Rs.1,110,000 plus 30 per cent of the gross amount exceeding Rs.6,000,000
8.Where the gross amount of rent exceeds Rs. 8,000,000Rs.1,710,000 plus 35 percent of the gross amount exceeding Rs.8,000,000

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