Increase tax credits
Income Tax Slabs
As per Federal Budget 2016-2017 presented by the Government of Pakistan, the following slabs and income tax rates will be applicable for salaried persons for the year 2016-2017:
- Where the taxable salary income does not exceed Rs. 400,000, the rate of income tax is 0%.
- Where the taxable salary income exceeds Rs. 400,000 but does not exceed Rs. 500,000, the rate of income tax is 2% of the amount exceeding Rs. 400,000.
- Where the taxable salary income exceeds Rs. 500,000 but does not exceed Rs. 750,000, the rate of income tax is Rs. 2,000 + 5% of the amount exceeding Rs. 500,000.
- Where the taxable salary income exceeds Rs. 750,000 but does not exceed Rs. 1,400,000, the rate of income tax is Rs. 14,500 + 10% of the amount exceeding Rs. 750,000.
- Where the taxable salary income exceeds Rs. 1,400,000 but does not exceed Rs. 1,500,000, the rate of income tax is Rs. 79,500 + 12.5% of the amount exceeding Rs. 1,400,000.
- Where the taxable salary income exceeds Rs. 1,500,000 but does not exceed Rs. 1,800,000, the rate of income tax is Rs. 92,000 + 15% of the amount exceeding Rs. 1,500,000.
- Where the taxable salary income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000, the rate of income tax is Rs. 137,000 + 17.5% of the amount exceeding Rs. 1,800,000.
- Where the taxable salary income exceeds Rs. 2,500,000 but does not exceed Rs. 3,000,000, the rate of income tax is Rs. 259,500 + 20% of the amount exceeding Rs. 2,500,000.
- Where the taxable salary income exceeds Rs. 3,000,000 but does not exceed Rs. 3,500,000, the rate of income tax is Rs. 359,500 + 22.5% of the amount exceeding Rs. 3,000,000.
- Where the taxable salary income exceeds Rs. 3,500,000 but does not exceed Rs. 4,000,000, the rate of income tax is Rs. 472,000 + 25% of the amount exceeding Rs. 3,500,000.
- Where the taxable salary income exceeds Rs. 4,000,000 but does not exceed Rs. 7,000,000, the rate of income tax is Rs. 597,000 + 27.5% of the amount exceeding Rs. 4,000,000.
- Where the taxable salary income exceeds Rs. 7,000,000, the rate of income tax is Rs. 1,422,000 + 30% of the amount exceeding Rs. 7,000,000.
