As per income tax exemption bill passed by Government of Pakistan, 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. 1000.
- Where the taxable salary income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000 the rate of income tax is Rs. 2000.
- 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. 8,000,000.
| Slab # | Min. Salary | Max. Salary | Tax Payable |
|---|---|---|---|
| 1 | 0 | 399,999 | 0% |
| 2 | 400,000 | 799,999 | 1,000 |
| 3 | 800,000 | 1,199,999 | 2,000 |
| 4 | 1,200,000 | 2,499,999 | 5% or 2,000 |
| 5 | 2,500,000 | 3,999,999 | 65,000 + 15% excess |
| 6 | 4,000,000 | 7,999,999 | 290,000 + 20% excess |
| 7 | 8,000,000 | no limit | 1,090,000 + 25% excess |