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New brackets introduced and taxes raised to 35 percent in rental income

The Federal Board of Revenue (FBR) has issued a roundabout to explain revisions made in the Income Tax Ordinance 2001 through the Finance Act 2019, under which three new sections have been added to the pay got from investment property and the assessments for the most elevated section have been raised to 35%. 

The revisions made to the computation of Capital Gains Tax (CGT) have additionally been explained. Essentially, the annual assessment sections for salaried classes have additionally been revised. Presently, just salaried people with a yearly pay of PKR 600,000 or higher will be obligated to make good on salary government expense. 

As indicated by the subtleties, no charges will be relevant on yearly rental salary if the all-out is not exactly PKR 200,000. The table beneath gives the total subtleties of tax collection on rental pay:

Total Annual Rent Tax Rate
PKR 200,000 or less 0
PKR 200,000—600,000 5%
PKR 600,000—1,000,000 PKR 20,000 + 10% of the amount exceeding PKR 600,000
PKR 1,000,000—2,000,000 PKR 60,000 + 15% of the amount exceeding PKR 1,000,000
PKR 2,000,000—4,000,000 PKR 210,000 + 20% of the amount exceeding PKR 2,000,000
PKR 4,000,000—6,000,000 PKR 610,000 + 25% of the amount exceeding PKR 4,000,000
PKR 6,000,000—8,000,000 PKR 1,110,000 + 30% of the amount exceeding PKR 6,000,000
PKR 8,000,000 or higher PKR 1,710,000 + 35% of the amount exceeding PKR 8,000,000

The rates are subject to fluctuation and depends on certain requirement. For more news and information contact Apex Group.

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