ISLAMABAD: The Federal Board of Revenue has decided to increase the limit of chargeable income for the salaried and non-salaried persons and associations of persons in the Budget 2017-18.
According to the Federal Board of Revenue sources, due to increase in inflation and received proposals from business community, trade bodies and chambers, the Federal Board of Revenue has decided to increase the limit of taxable income for salaried persons from Rs0.4 million to Rs0.5 million and same like non-salaried persons and associations of persons who will also benefit from this limit but the tax rate will be different for non-salaried persons and associations of persons.
There will be no income tax on annual income up to five hundred thousand for salaried and non-salaried persons. It means up to Rs41666 monthly salary will be income-tax-free. Different tax rate will be applicable to income exceeding Rs500000. According to FBR sources, it is expected that for salaried class there will be no major change in applicable tax rates but non-salaried class may face some minor changes.
