Withholding tax rates on property income for 2021-2022

Withholding tax rates on property income for 2021-2022

The Federal Board of Revenue (FBR) has issued updated rates of withholding tax on income from the property for the year 2021-2022.

The withholding tax shall be collected by every prescribed person from the recipients of rent of the immovable property.

The FBR collects withholding tax on income from property under Section 155 of the Income Tax Ordinance, 2001.

WITHHOLDING TAX CARD 2021/2022

Following are the rates of withholding tax:

Any payment made on account of rent of the immovable property

(A) In case of individual or Association of Person (AOP):

1. Where the gross amount of rent does not exceed Rs, 300,000: There shall be no 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 exceeds 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) in case of the company: the tax rate shall be 15 per cent.

The tax deducted under Section 155 of Income Tax Ordinance, 2001 is adjustable.