tax slab/ tax reduce rate published in business recorder by FBR and Tax Authorities
The Federal Board of Revenue (FBR) has reduced tax rates for non-salaried individuals and Association of Persons (AoPs) as well as salaried individuals earning (between Rs400,000 to Rs500,000) through Finance Act, 2015. According to income tax circular No 2 of 2015 issued here on Saturday, the FBR has explained the reduction in tax rates for salaried/non-salaried individuals and AoPs.
To provide relief to non-salaried individuals and AoPs, particularly those earning income, the tax rates have been reduced from 10 percent to 7 percent through Finance Act, 2015 and for salaried individual earning between 400,000 to 500,000 tax rates have been reduced 5 percent to 2 percent. This relief will be available to all salaried and non-salaried individuals and AoPs who are earning more than Rs500,000. The revised tax slabs for non salaried individuals and AoPs are as under:
Tax rates for non-salaried individuals and AoPs: Where the taxable income does not exceed Rs 400,000, rate of tax would be 0 percent; where the taxable income exceeds Rs 400,000 but does not exceed Rs 500,000, tax rate would be 7 percent of the amount exceeding Rs 400,000; Where the taxable income exceeds Rs500,000 but does not exceed Rs 750,000. tax rate would be Rs 7,000 + 10 percent of the amount exceeding Rs 500,000; Where the taxable income exceeds Rs 750,000 but does not exceed Rs 1,500,000, tax rate would be Rs 32,000 + 15 percent of the amount exceeding Rs750,000; where the taxable income exceeds Rs 1,500,000 but does not exceed Rs2,500,000, tax rate would be Rs 144,500 + 20 percent of the amount exceeding Rs1,500,000; where the taxable income exceeds Rs 2,500,000 but does not exceed Rs4,000,000, tax rate would be Rs 344,500 + 25 percent of the amount exceeding Rs2,500,000; where the taxable income exceeds Rs 4,000,000 but does not exceed Rs6,000,000, tax rate would be Rs 719,500 + 30 percent of the amount exceeding Rs 4,000,000 and where the taxable income exceeds Rs 6,000,000, tax rate would be Rs 1,319,500 + 35 percent of the amount exceeding Rs 6,000,000.
Tax rates for salaried individuals: Where the taxable income does not exceed Rs 400,000, tax rate would be 0 percent; where the taxable income exceeds Rs 400,000 but does not exceed Rs 500,000, tax rate would be 2 percent of the amount exceeding Rs 400,000; Where the taxable income exceeds Rs 500,000 but does not exceed Rs 750,000, tax rate would be Rs 2,000 + 5 percent of the amount exceeding Rs 500,000; where the taxable income exceeds Rs 750,000 but does not exceed Rs 1,400,000, tax rate would be Rs 14,500 + 10 percent of the amount exceeding Rs750,000; where the taxable income exceeds Rs 1,400,000 but does not exceed Rs1,500,000, tax rate would be Rs 79,500 + 12.5 percent of the amount exceeding Rs1,400,000; where the taxable income exceeds Rs 1,500,000 but does not exceed Rs1,800,000, tax rate would be Rs 92,000 + 15 percent of the amount exceeding Rs1,500,000; where the taxable income exceeds Rs 1,800,000 but does not exceed Rs 2,500,000, tax rate would be Rs 137,000 + 17.5 percent of the amount exceeding Rs 1,800,000; where the taxable income exceeds Rs 2,500,000 but does not exceed Rs 3,000,000, tax rate would be Rs 259,500 + 20 percent of the amount exceeding Rs 2,500,000; where the taxable income exceeds Rs 3,000,000 but does not exceed Rs 3,500,000, tax rate would be Rs 359,500 + 22.5 percent of the amount exceeding Rs 3,000,000; where the taxable income exceeds Rs3,500,000 but does not exceed Rs 4,000,000, tax rate would be Rs 472,000 + 25 percent of the amount exceeding Rs 3,500,000; where the taxable income exceeds Rs 4,000,000 but does not exceed Rs 7,000,000, tax rate would be Rs 597,000 + 27.5 percent of the amount exceeding Rs 4,000,000; where the taxable income exceeds Rs 7,000,000, tax rate would be Rs 1,422,000 + 30 percent of the amount exceeding Rs 7,000,000.