Salary persons having income above Rs400,000 require to file return for tax year 2019

KARACHI: Persons driving salary income above Rs400,000 are remained liable to file annual income tax returns for tax year 2019.

Through Finance Act, 2019 the threshold income for salary persons for the purpose of income tax deduction has been increased to Rs600,000. However, this threshold is applicable for the tax year 2020.

The last date for filing income tax returns for tax year 2019 is December 16, 2019, which was extended third time. The actual filing date was due on September 30, 2019.

Following is the table of income for salary persons required to file their income tax returns for tax year 2019:

 

S. No. Taxable income Rate of tax
(1) (2) (3)
1. Where the taxable income does not exceed Rs. 400,000 0%
2. Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 800,000 Rs. 1,000
3. Where the taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000 Rs. 2,000
4. Where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,500,000 5% 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 65,000 + 15% of the amount exceeding Rs. 2,500,000
6. Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 8,000,000 290,000 + 20% of the amount exceeding Rs. 4,000,000
7. Where the taxable income exceeds Rs. 8,000,000 1,090,000 + 25% of the amount exceeding Rs. 8,000,000

 

However, this rate of tax is applicable where head salary exceeds 50 percent of taxable income of a salary person.

The FBR further clarified that where the taxable income exceeds eight hundred thousand rupees the minimum tax payable shall be two thousand rupees.

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