FBR issues withholding tax rates for salary persons

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KARACHI: Federal Board of Revenue (FBR) has issued withholding tax rates for salary income, which would be deducted by employers at the time of paying salary to the employees and will be applicable for tax year 2018/2019.

According to Withholding Tax Card – 2018, the FBR said that under Section 149 of Income Tax Ordinance, 2001, every person responsible for paying salary to an employee shall deduct tax from the amount paid.
Following are the rates of withholding tax:
1. Zero percent to be applicable where the taxable income does not exceed Rs400,000.
2. Rs1,000 [edit fixed tax on annual income] where the taxable income exceeds Rs400,000 but does not exceeds Rs800,000.
3. Rs2,000 [edit fixed tax on annual income] where the taxable income exceeds Rs800,000 but does not exceed Rs1,200,000.
4. 5 percent of the amount exceeding Rs1,200,000 where the taxable income exceeds Rs1,200,000 but does not exceed Rs2,400,000.
5. Rs60.000 + 10 percent of the amount exceeding Rs2,400,000 where the taxable income exceeds Rs2,400,000 but does not exceed Rs4,800,000.
6. Rs300,000 + 15 percent of the amount exceeding Rs4,800,000 where the taxable income exceeds Rs4,800,000.

For detailed withholding tax rates please download Withholding Tax Card – 2018.

4 COMMENTS

  1. Reduced rate of income tax actually increased the income of salary person with out increasing cost of enterpenuer

  2. here is the complication in calculation of salry wht….
    1) 8lac to 12lac tax is 2000 i.e 167/month…this is ok
    2) but 1,200,001 to 24lac….. if a person has monthly salary 102,000/ then exceding amount is 2000*12=24000/anum which tax is 1080/anum and 90/month which is less than slab 2 of 167…is it posible….here they ddt use common scene…nd there is no explation of 90+167/month…they just said for 90…how its posible……need valuable coments

  3. I want to know if the same rates, as applicable on salaried individuals, are applicable on income of an individual, deriving property i.e. rent. If it is not so than what are the rates on rental income?

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