ISLAMABAD: The government has announced new tax slab for salary persons to be applicable during tax year 2019 through Finance (Amendment) Bill 2018/2019 presented by Finance Minister Asad Umar on Tuesday.

Following is the table of new tax slabs to be applicable on persons deriving salary income:

S No. Taxable Income Rate of Tax
01 Where the taxable income does not exceed Rs400,000 0 percent
02 Where the taxable income exceeds Rs400,000 but does not exceed Rs800,000 Rs1,000
03 Where the taxable income exceeds Rs800,000 but does not exceeds Rs1,200,000 Rs2,000
04 Where the taxable income exceeds Rs1,200,000 but does not exceed Rs2,500,000 5 percent of the amount exceeding Rs1,200,000
05 Where the taxable income exceeds Rs2,500,000 but does not exceeds Rs4,000,000 Rs65,000+15 percent of the amount exceeding Rs2,500,000
06 Where the taxable income exceeds Rs4,000,000 but does not exceed Rs8,000,000 Rs290,000+20 percent of the amount exceeding Rs.4,000,000
07 Where the taxable income exceeds Rs8,000,000 Rs1,090,000+25 percent of the amount exceeding Rs8,000,000

Provided that where the taxable income exceeds eight hundred thousand rupees the minimum tax payable shall be two thousand rupees.

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  • tax is applicable on yearly income, and calculated on yearly income.
    That tax amount is then divided by 12, and the result is deducted and deposited monthly by your employer.

    Moreover as per slabs of this 2018-19 tax year, there is no tax if the yearly taxable income is less than or equal to 4 lakh.

  • for suppose your monthly salary is 30,000, so the yearly salary should be like this one “30,000*12” = 360,000. So that mean it doesn’t exceed than 400,000 so no tax for that amount & if our monthly salary is 35,000 so according to same rule “35,000*12” = 420,000. Here its exceeded than 400,000 so you have to pay 1000 for a year. & you have to pay monthly wise.

  • Can someone tell me whether the tax will be given monthly or yearly
    and tax is applicable on 4 lakhs monthly or yearly?

  • What is effective date of this change? Does it take effect from September Salary or beginning of Financial Year?