Income Tax Slabs For Salary Individual

As per Finance Supplementary (Amendment) Bill, 2018 passed by Government of Pakistan in September 2018, following slabs and income tax rates will be applicable for salaried persons for the year 2018-2019 who meet the following income condition.

Paragraph (1A) Where the income of an individual chargeable under the head "salary" exceeds fifty per cent (50%) of his taxable income, the rates of tax to be applied shall be as set out as follow.

  1. Where the taxable income does not exceed Rs. 400,000 the rate of income tax is 0%.
  2. Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 800,000 the rate of income tax is Rs. 1000.
  3. Where the taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000 the rate of income tax is Rs. 2000.
  4. Where the taxable 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.
  5. Where the taxable 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.
  6. Where the taxable 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.
  7. Where the taxable 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.

    Income Tax Slabs For Non-Salary/Business Individual

    As per Finance Supplementary (Amendment) Bill, 2018 passed by Government of Pakistan in September 2018, following slabs and income tax rates will be applicable for non-salaried persons for the year 2018-2019 who meet the following income condition.

    The rates of tax imposed on the taxable income of every individual, not being an individual to which paragraph (1A).

    1. Where the taxable income does not exceed Rs. 400,000 the rate of income tax is 0%.
    2. Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 800,000 the rate of income tax is Rs. 1000.
    3. Where the taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000 the rate of income tax is Rs. 2000.
    4. Where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000 the rate of income tax is 5% of the amount exceeding Rs. 1,200,000.
    5. Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000 the rate of income tax is Rs. 60,000 + 15% of the amount exceeding Rs. 2,400,000.
    6. Where the taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000 the rate of income tax is Rs. 150,000 + 20% of the amount exceeding Rs. 3,000,000.
    7. Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 5,000,000 the rate of income tax is Rs. 350,000 + 25% of the amount exceeding Rs. 4,000,000.
    8. Where the taxable income exceeds Rs. 5,000,000 the rate of income tax is Rs. 6,00,000 + 29% of the amount exceeding Rs. 5,000,000.

      When we can exempt medical allowance from salary income?

      As per Income Tax Ordinance, Medical Benefits, Second Schedule Part I clause 139.

      Medical allowance received up to 10% of Basic salary is exempt where no free medical treatment / hospitalization or reimbursement of such expenses is provided for in terms of employment.Provision of medical treatment / hospitalization or reimbursement of such expenses received by the employee is exempt if in accordance with terms of employment. Any medical allowance received with free medical facility is fully taxable.

      What is Pakistan Tax Calculator?

      Pakistan Tax Calculator is an easy way to calculate your income tax for FY 2018-19. It is upto date and covers latest Finance Supplementary (Amendment) Bill, 2018 passed by Government of Pakistan in September 2018. It calculates income tax for salaried and non-salaried/ business persons.

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