Increase tax credits
Income Tax Slabs
As per Federal Budget 2018-2019 presented by the Government of Pakistan, the following slabs and income tax rates will be applicable for salaried persons for the year 2018-2019:
- 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. 800,000, the rate of income tax is Rs. 1,000.
- Where the taxable salary income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000, the rate of income tax is Rs. 2,000.
- Where the taxable salary income exceeds Rs. 1,200,000 but does not exceed Rs. 2,500,000, the rate of income tax is 5% of the amount exceeding Rs. 1,200,000 or Rs. 2,000, whichever is greater.
- Where the taxable salary income exceeds Rs. 2,500,000 but does not exceed Rs. 4,000,000, the rate of income tax is Rs. 65,000 + 15% of the amount exceeding Rs. 2,500,000.
- Where the taxable salary income exceeds Rs. 4,000,000 but does not exceed Rs. 8,000,000, the rate of income tax is Rs. 290,000 + 20% of the amount exceeding Rs. 4,000,000.
- Where the taxable salary income exceeds Rs. 8,000,000, the rate of income tax is Rs. 1,090,000 + 25% of the amount exceeding Rs. 4,800,000.
