As this year the government in Pakistan have been changed and power have been transferred from Pakistan Muslim League – Nawaz (PML-N) to Pakistan Tehreek-e-Insaf (PTI), so two budgets were presented. One from the leaving government and one from new PTI Government. So there was a lot of confusion regarding the income tax rates for upcoming tax payment for fiscal year 2018-19, the tax which will be due for payment just after June 2019.
So to clear this we have done some research and here is what FBR have to say about the tax rates for salaried income for Fiscal Year 2018-19.
|#||Income Category||Yearly Tax Amount|
|1||Taxable Income below 400,000||0%|
|2||Taxable Income between 400,000 and 800,000||Rs. 1000|
|3||Taxable Income between 800,000 and 1,200,000||Rs. 2000|
|4||Taxable Income between 1,200,000 and 2,400,000||5% of Amount Exceeding Rs. 1,200,000|
|5||Taxable Income between 2,400,000 and 4,800,000||Rs. 60,000 Plus 10% of Amount Exceeding 2,400,000|
|6||Taxable Income above 4,800,000||Rs. 300,000 Plus 15% of Amount Exceeding 4,800,000|
So, as per the latest income tax rates for fiscal year 2018-19 for salaried income in Pakistan, if you earn anything up to 400,000 Rs. Yearly you are not required to pay any tax. Any one earning between 400,000 to 1,200,000 will have to pay minor 1000 or 2000 Rs. yearly. And the real tax slabs start after 1,200,000. So for anyone earning up to 100,000 monthly there is virtually no tax, which makes perfect sense, as government tried to put tax burden on people earning better and gave relief to people earning up to 100,000 monthly.
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