As per Income Tax Ordinance 2001

As per Income Tax Ordinance 1979

Tax Rates as per Income Tax Ordinance 2001

(A)   Rates of Tax of Salaried Person

(B)   For a Individuals and A.O.P. (other than companies)

(C)   For a Company

(A) RATES FOR SALARIED PERSONS                   

For tax year 2007 for every Salaried Person, the income tax shall be charged on the taxable income, at the following rates:-

• Provided that where income of a woman taxpayer is covered by this clause, no tax shall be charged if the taxable income does not exceed Rs.200,000/-

• Further 75% reductions in tax payable for a full time teacher or researcher employed in a non profit education or research institution recognized by a Board of Education, University or a Higher Education Commission.

• Special tax rebate of an amount equal to 50% of the tax payable to a taxpayer of 60 years of age or above and earning income upto Rs. 400,000/-.

For tax year 2006 for every Salaried Person, the income tax shall be charged on the taxable income, at the following rates:-

Note:

• Further 50% reductions in tax payable for a full time teacher or researcher employed in a non profit education or research institution recognized by a Board of Education, University or a Higher Education Commission.

• Special tax rebate of an amount equal to 50% of the tax payable to a taxpayer of 65 years of age or above and earning income upto Rs. 400,000/-.

For tax year 2005 for every Salaried Person, the income tax shall be charged on the taxable income, at the following rates:-

• Further 50% reductions in tax payable for a full time teacher or researcher employed in a non profit education or research institution recognized by a Board of Education, University or a University Grant Commission.

• Special tax rebate of an amount equal to 50% of the tax payable to a taxpayer of 65 years of age or above and earning income upto Rs. 300,000/-.

For tax years 2003 and 2004 for every Salaried Person, the income tax shall be charged on the taxable income, at the following rates:-

(B) RATES FOR BUSINESS

For tax year 2007 for every individual, and Association of Persons, the income tax shall be charged on the taxable income, at the following rates

• Provided that where income of a woman taxpayer is covered by this clause, no tax shall be charged if the taxable income does not exceed Rs.125,000/-

• Special tax rebate of an amount equal to 50% of the tax payable to a taxpayer of 60 years of age or above and earning income upto Rs. 400,000/-.

For tax year 2005 and 2006 for every individual, and Association of Persons, the income tax shall be charged on the taxable income, at the following rates

• Special tax rebate of an amount equal to 50% of the tax payable to a taxpayer of 65 years of age or above and earning income upto Rs. 400,000/- (For tax year 2005 upto Rs. 300,000/-.)

For tax years 2003 and 2004 for every individual, and Association of Persons, the income tax shall be charged on the taxable income, at the following rates

TABLE

(C) RATES FOR COMPANIES

TABLE

Tax Rates as per Income Tax Ordinance 1979

(A)   For Business Individuals
(B)   For Salaried Persons
(C)   For a Registered Firm
(D)   For a Company

For More Information see

First Schedule Of Income Tax Ordinance, 1979

(A) RATES FOR BUSINESS INDIVIDUALS

       For a person other than company and has income other than salary which is more than 50% of his total income.

For Assessment Year 2002-2003

For every individual,  unregistered firm, association of persons, Hindu undivided family, the income tax shall be charged on the total income, excluding income to which section 80B, 80C and 8OCC apply, at the following rates:-

Note:

• Special tax rebate of an amount equal to 50% of the tax payable by an assessee of 65 years of age or above and earning income upto Rs. 200,000/-.

For Assessment Year 1999-2000, 2000-2001 & 2001-2002

For every individual,  unregistered firm, association of persons, Hindu undivided family, the income tax shall be charged on the total income, excluding income to which section 80B, 80C and 8OCC apply, at the following rates:-

Note:

• Income Tax is not payable where total income does not exceed Rs. 40,000/-.

• The Income Tax payable shall be reduced by Rs. 2,000/-.

• Rate of Surcharge is 10% of the amount of income tax payable.

• Special tax rebate of an amount equal to 50% of the tax payable by an assessee of 65 years of age or above and earning income upto Rs. 200,000/-.

For a person other than company who is filing Return under Self Assessment Scheme 

For Assessment Year 2000-2001 & 2001-2002

• Rates as above.

For Assessment Year 1999-2000

Note:

• Income Tax is not payable where total income does not exceed Rs. 40,000/-.

• The Income Tax payable shall be reduced by Rs. 1,250/-.

• Special tax rebate of an amount equal to 50% of the tax payable by an assessee of 65 years of age or above and earning income upto Rs. 200,000/-

(B) RATES FOR SALARIED PERSONS 

For assessment year 2002-2003 (i.e. income year 2001-2002), for every Salaried Person, the income tax shall be charged on the taxable income, at the following rates:-

Note:

• Special tax rebate of an amount equal to 50% of the tax payable by an assessee of 65 years of age or above and earning income upto Rs. 200,000/-.

• Tax liability will be further reduced to 50% for full time teachers or researchers employed in a non-profit education or research institution duly recognised.

• Exemptions on Allowances and Perquisites are only applicable to the income not exceeding Rs. 300,000/- (inclusive of Allowances and Perquisites) as per last year.

• When income exceeds Rs. 300,000/- (inclusive of Allowances and Perquisites) the whole income is taxable at the above rates, as per last year.

• To see deductible Allowances and Perquisites on Salary see What are Perquisites and How are taxed?

For assessment year 2001-2002 i.e. income year 2000-2001), for every Salaried Person, the income tax shall be charged on the taxable income, at the following rates:-

Note:

• Income Tax is not payable where total income does not exceed Rs. 50,000/-.

• The rate of reduction is applied after reducing the tax liability by Rs. 2,500/-.

• Special tax rebate of an amount equal to 50% of the tax payable by an assessee of 65 years of age or above and earning income upto Rs. 200,000/-.

• Tax liability will be further reduced to 50% for full time teachers or researchers employed in a non-profit education or research institution duly recognised.

• Exemptions on Allowances and Perquisites are only applicable to the income not exceeding Rs. 300,000/- (inclusive of Allowances and Perquisites) as per last year.

• When income exceeds Rs. 300,000/- (inclusive of Allowances and Perquisites) the whole income is taxable at the above rates, as per last year.

• To see deductible Allowances and Perquisites on Salary see What are Perquisites and How are taxed?

For assessment year 2000-2001 (i.e. income year 1999-2000), for every Salaried Person, the income tax shall be charged on the taxable income, at the following rates:-

Note:

• Income Tax is not payable where total income does not exceed Rs. 50,000/- for working man and Rs. 60,000/- for working woman.

• The Income Tax payable shall be reduced by Rs. 2,500/- for working man and Rs. 3,000 for working woman not being a director.

• Special tax rebate of an amount equal to 50% of the tax payable by an assessee of 65 years of age or above and earning income upto Rs. 200,000/-.

• Exemptions on Allowances and Perquisites are only applicable to the income not exceeding Rs. 300,000/- (inclusive of Allowances and Perquisites).

• When income exceeds Rs. 300,000/- (inclusive of Allowances and Perquisites) the whole income is taxable at the above rates.

• To see deductible Allowances and Perquisites on Salary see What are Perquisites and How are taxed?

       For assessment year 1999-2000 i.e. income year 1998-99, for every Salaried Person, the income tax shall be charged on the taxable income, at the following rates:-

Note:

• Income Tax is not payable where taxable income does not exceed Rs. 50,000/- for working man and Rs. 60,000/- for working woman.

• The Income Tax payable shall be reduced by Rs. 2,500/- for working man and Rs. 3,000 for working woman not being a director.

• Special tax rebate of an amount equal to 50% of the tax payable by an assessee of 65 years of age or above and earning income upto Rs. 200,000/-.

• Exemptions on Allowances and Perquisites are only applicable to the income not exceeding Rs. 300,000/- (inclusive of Allowances and Perquisites). The rates on Allowances and perquisites where salary is of Rs. 300,000/- or more (inclusive of Allowances and Perquisites) are as under :-

• To see deductible Allowances and Perquisites on Salary see What are Perquisites and How are taxed?

(C) For a Registered Firm

For every Registered Firm, the income tax shall be charged on the total income, at the following rates:-

Note:

• The Rate of Surcharge for income below Rs. 100,000/- is Rs. 300.

(D) For a Company

For Assessment Year commencing on or after 01st July, 2002

For every company not being modaraba, the income tax shall be charged on the total income, at the following rates:-

For Assessment Year commencing on or after 01st July, 1999 but before 01st July, 2002

For every company not being modaraba, the income tax shall be charged on the total income, at the following rates:-

Note:

• The Rate of Surcharge @5% is payable from assessment year 2000-2001 (i.e. income year 1999-2000).