As per amended Finance Bill, following is the revised taxable income of salaried persons and the rate of tax to provide relief to the salaried class:

  1. Where the taxable income does not exceed Rs 400,000, rate of tax is 0%;
  2. where the taxable income exceeds Rs 400,000 but does not exceed Rs 750,000, rate of tax is 5% of the amount exceeding Rs 400,000;
  3. where the taxable income exceeds Rs 750,000 but does not exceed Rs 1,400,000, rate of tax is Rs 17,500 + 10% of the amount exceeding Rs 750,000;
  4. where the taxable income exceeds Rs 1,400,000 but does not exceed Rs 1,500,000, rate of tax is Rs 82,500 + 12.5% of the amount exceeding Rs 1,400,000;
  5. where the taxable income exceeds Rs 1,500,000 but does not exceed Rs 1,800,000, rate of tax is Rs 95,000 + 15% of the amount exceeding Rs 1,500,000;
  6. where the taxable income exceeds Rs 1,800,000 but does not exceed Rs 2,500,000, rate of tax is Rs 140,000 + 17.5% of the amount exceeding Rs 1,800,000;
  7. where the taxable income exceeds Rs 2,500,000 but does not exceed Rs 3,000,000, rate of tax is Rs 262,500 + 20% of the amount exceeding Rs 2,500,000;
  8. where the taxable income exceeds Rs 3,000,000 but does not exceed Rs 3,500,000, rate of tax is Rs 362,500 + 22.5% of the amount exceeding Rs 3,000,000;
  9. where the taxable income exceeds Rs 3,500,000 but does not exceed Rs 4,000,000, rate of tax is Rs 475,000 + 25% of the amount exceeding Rs 3,500,000;
  10. where the taxable income exceeds Rs 4,000,000 but does not exceed Rs 7,000,000; rate of tax is Rs 600,000 + 27.5% of the amount exceeding Rs 4,000,000;
  11. where the taxable income exceeds Rs 7,000,000, rate of tax is Rs 1,425,000 + 30% of the amount exceeding Rs 7,000,000.

TO SEE FINAL APPROVED SALARY INCOME TAX RATES FOR TAX YEAR 2013, PLEASE CLICK HERE

49 Comments

  1. humayun

    Did they restore tax relief for investments , stocks , mortgage payment vs the original draft of no adjustment during the year and people will have to apply for refund…. The EMPIRE (FBR) strikes back

  2. Solomon

    In calculating annual tax slab, do we need to subtract non-taxable amount of Rs 400,000 from the total annual salary? For example if total annual salary is Rs 1,000,000/- so is taxable income 1 million or Rs 600,000

  3. ArsalanHaider

    where the taxable income exceeds Rs 7,000,000, rate of tax is Rs 1,425,000 + 30% of the amount exceeding Rs 7,000,000.
    it Must be be 14,250,000 not 1,425,000….
    Please Correct

  4. Malak Ram

    In the finance act 2013 ,the sub sections 6 and 7 of section 15 have been omitted of I.T ordinance.The question now arises that on which division , part and schedule of the I.T ordinance the tax would be charged on income from property? previously it was charged on the basis of division v1 part 1 of first schedule. now the finance act has omitted that above mentioned division. Please tell the page of approved finance act on which it has been mentioned that the tax under section 15 would be charged on this………….. I have a copy of approved finance act 2013. I have confusion regarding this section.

  5. zafar

    Dear sir, if a person draw a salary 125000, how the employer adjuste his 10% medical allowance in monthly salary.
    1. from direct calculate on 125000 x10% or
    2. on basic pay method
    please provide the correct answer

    best regards.

  6. Ammarah

    Hello, great efforts by your firm but i would like you to highlight my query that is it not the Tax Rates for Association of persons and non salaried individuals. We have alot of confussion on the slab rates and tax rates . Thank you

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