KARACHI: The Finance Bill 2015-16 has proposed revision in the income tax rates and slabs on salaried taxpayers as well as non-salaried taxpayers. The minimum income tax rate on the salaried persons has been reduced to 2.0 percent as against 5.0 percent earlier. This rate is applicable on persons drawing salaries ranging Rs 400,000 to Rs 500,000 per year.
According to the proposed revision, no tax will be applicable where the taxable income does not exceed Rs 400,000; where the taxable income exceeds Rs 400,000 but does not exceed Rs 500,000 tax deduction would equal 2.0 percent of the amount exceeding Rs 400,000; where the taxable income exceeds Rs 500,000 but does not exceed Rs 750,000 income tax would amount to Rs 2,000 plus 5.0 percent of the amount exceeding Rs 500,000; where the taxable income exceeds Rs 750,000 but does not exceed Rs 1,400,000 tax would be calculated at Rs 14,500 plus 10 percent of the amount exceeding Rs 750,000.
On income taxable income ranging Rs 1,400,000 to Rs 1,500,000, tax will be Rs 79,500 plus 12.5 percent of the amount exceeding Rs 1,400,000; On taxable income between Rs 1,500,000 and Rs 1,800,000, tax will be Rs 92,000 plus 15 percent of the amount exceeding Rs 1,500,000;
On taxable income between Rs 1,800,000 and Rs 2,500,000 tax will be Rs 137,000 plus 17.5 percent of the amount exceeding Rs 1,800,000; on taxable income exceeds ranging Rs 2,500,000 to Rs 3,000,000, tax will be Rs 259,500 plus 20 percent of the amount exceeding Rs 2,500,000.
Where the taxable income exceeds Rs 3,000,000 but does not exceed Rs 3,500,000, tax will be Rs 359,500 + 22.5% of the amount exceeding Rs 3,000,000; where the taxable income exceeds Rs 3,500,000 but does not exceed Rs 4,000,000 tax will Rs 472,000 + 25% of the amount exceeding Rs 3,500,000; where the taxable income exceeds Rs 4,000,000 but does not exceed Rs 7,000,000, tax will be Rs 597,000 + 27.5% of the amount exceeding Rs 4,000,000 and where the taxable income exceeds Rs 7,000,000, tax will be Rs 1,422,000 + 30% of the amount exceeding Rs 7,000,000.
The tax rates and slabs for individuals and association of persons other than the salaried persons have also been revised:
No tax where the taxable income does not exceed Rs 400,000; Where the taxable income exceeds Rs 400,000 but does not exceed Rs 500,000 (7.0 percent of the amount exceeding Rs 400,000); where the taxable income exceeds Rs 500,000 but does not exceed Rs 750,000 (Rs 7,000 + 10 percent of the amount exceeding Rs 500,000); where the taxable income exceeds Rs 750,000 but does not exceed Rs 1,500,000 (Rs 32,000 + 15% of the amount exceeding Rs 750,000 ).
Where the taxable income exceeds Rs 1,500,000 but does not exceed Rs 2,500,000 tax will be Rs 144,500 + 20% of the amount exceeding Rs 1,500,000; Where the taxable income exceeds Rs 2,500,000 but does not exceed Rs 4,000,000 (Rs 344,500 + 25% of the amount exceeding Rs 2,500,000); where the taxable income exceeds Rs 4,000,000 but does not exceed Rs 6,000,000 (Rs 719,500 + 30% of the amount exceeding Rs 4,000,000) and where the taxable income exceeds Rs 6,000,000 tax will be Rs 1,319,500 + 35% of the amount exceeding Rs 6,000,000.