June 12, 2019

The New Income Tax Slabs for Financial Year 2019-20 in Pakistan

Naveen Shayan

LedgerMax specialist

The budget 2019-2020 has lately been announced by the federal government in Pakistan with numerous tax adjustments. The tax rates for both salaried and nonsalaried individuals have also been increased.

Tax Slabs for Salaried Income

If an individual's salary is more than 75% of his/her taxable income, the following tax rates will be applied:

Serial No.Taxable IncomeTax Rate

  1. Where the taxable income does not exceed Rs. 600,0000%.
  2. Where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000Where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000
  3. Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000Rs. 30,000 plus 10% of the amount exceeding Rs. 1,200,000
  4. Where taxable income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000Rs. 90,000 plus 15% of the amount exceeding Rs. 1,800,000
  5. Where taxable income exceeds Rs. 2,500,000 but does not exceed Rs. 3,500,000Rs. 195,000 plus 17.5% of the amount exceeding Rs. 2,500,000
  6. Where the taxable income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000Rs. 370,000 plus 20% of the amount exceeding Rs. 3,500,000
  7. Where the taxable income exceeds Rs. 5,000,000 but does not exceed Rs. 8,000,000Rs. 670,000 plus 22.5% of the amount exceeding Rs. 5,000,000
  8. Where the taxable income exceeds Rs. 8,000,000 but does not exceed Rs. 12,000,000Rs. 1,345,000 plus 25% of the amount exceeding Rs. 8,000,000
  9. Where taxable income exceeds Rs. 12,000,000 but does not exceed Rs.30,000,000Rs. 2,345,000 plus 27.5% of the amount exceeding Rs. 12,000,000
  10. Where the taxable income exceeds Rs. 30,000,000 but does not exceed Rs.50,000,000Rs. 7,295,000 plus 30% of the amount exceeding Rs. 30,000,000
  11. Where taxable income exceeds Rs. 50,000,000 but does not exceed Rs.75,000,000Rs.13,295,000 plus 32.5% of the amount exceeding Rs. 50,000,000
  12. Where taxable income exceeds Rs.75,000,000Rs. 21,420,000 plus 35% of the amount exceeding Rs. 75,000,000

Tax Slabs for Non-Salaried IncomeExcept salaried income, the following tax rates will be imposed on the income of every other person or group of individuals:

Serial No.Taxable IncomeTax Rate

  1. Where the taxable income does not exceed Rs. 400,0000%
  2. Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 600,0005% of the amount exceeding Rs. 400,000
  3. Where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000Rs. 10,000 plus 10% of the amount exceeding Rs. 600,000
  4. Where the taxable income exceeds Rs. 1,200,000 but does not Rs. 2,400,000Rs. 70,000 plus 15% of the amount exceeding Rs. 1,200,000
  5. Where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000Rs. 250,000 plus 20% of the amount exceeding Rs. 2,400,000
  6. Where taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000Rs. 370,000 plus 25% of the amount exceeding Rs. 3,000,000
  7. Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 6,000,000Rs. 620,000 plus 30% of the amount exceeding Rs. 4,000,000
  8. Where the taxable income exceeds Rs. 6,000,000Rs. 1,220,000 plus 35% of the amount exceeding Rs. 6,000,000

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