FBR notifies withholding tax rates on rental income

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KARACHI: Federal Board of Revenue (FBR) has notified withholding tax rates to be applicable on account of rent of immovable property during year 2017/2018.
According to Withholding Tax Rate Card 2017/2018, every prescribed persons as per Section 155 of Income Tax Ordinance, 2001 required to collect tax from recipient of rent of immovable property at the time the rent is actually paid.
The FBR notifies rates
(A) in case of individual or Association of Person (AOP):
— Where the gross amount of rent does not exceed Rs, 200,000: Nil
— Where the gross amount of rent exceeds Rs, 200,000 but does not exceed Rs, 600,000: 5% of the gross amount exceeding Rs, 200,000
— Where the gross amount of rent exceeds Rs, 600,000 but does not exceed Rs, 1,000,000: Rs, 20,000+10% of the gross amount exceeding Rs, 600,000
— Where the gross amount of rent exceeds Rs, 1,000,000 but does not exceed Rs, 2,000,000: Rs,60,000+15% of the gross amount exceeding Rs, 1,000,000
— Where the gross amount of rent exceeds Rs, 2,000,000: Rs, 210,000+20% of the gross amount exceeding Rs, 2,000,000
(B) in case of company:
Filers: 15 percent
Non-filers: 17.5 percent

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