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FBR updates tax rate for salary persons for up to March 9

byCT Report
26/04/2019
in Islamabad, Latest News
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ISLAMABAD: Federal Board of Revenue (FBR) has updated tax rate for salary persons as per Finance Supplementary (Second Amendment) Act, 2019. The tax card is updated up to March 09, 2019.

The FBR said that persons responsible for paying salary are required to collect tax from employees under Section 149 of Income Tax Ordinance, 2001 at the time salary is actually paid.

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Every person responsible for paying salary to an employee shall deduct tax from the amount paid:

  1. Where the taxable income does not exceed Rs400,000: zero percent
  2. Where the taxable income exceeds Rs400,000 but does not exceed Rs800,000: Rs1,000
  3. Where the taxable income exceeds Rs800,000 but does not exceed Rs1,200,000: Rs2,000
  4. Where the taxable income exceeds Rs1,200,000 but does not exceed Rs2,500,000: 5 percent of the amount exceeding Rs1,200,000.
  5. Where the taxable income exceeds Rs2,500,000 but does not exceed Rs4,000,000: Rs 65,000/- + 15 percent of the amount exceeding Rs2,500,000.
  6. Where the taxable income exceeds Rs4,000,000 but does not exceed Rs8,000,000: Rs290,000/- + 20 percent of the amount exceeding Rs4,000,000.
  7. Where the taxable income exceeds Rs8,000,000: Rs1,090,000/- + 25 percent of the amount exceeding Rs4,800,000.

Provided that where the taxable income exceeds Rs800,000/- the minimum tax payable shall be Rs2,000/-.

 

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