Tax Application on Monthly Income over PKR 50k
Islamabad: After the revelation of Budget 2019-20, the monthly income tax application has been confirmed to be applicable over PKR 50,000. The tax will be payable only when an individual is earning over PKR 50,000 monthly or more than this.
In the Budget 2019-20, the Minister of State Revenue, Hammad Azhar revealed a total of 11 slabs for the salaried individuals across the country. He further announced that all the individuals who earn a total amount of PKR 50,000 on a monthly basis, making PKR 600,000 yearly or lower than this are not liable to pay any tax.
Therefore, all the individuals who are earning more than PKR 50,000 i.e. making more than PKR 600,000 per year and less than PKR 1,200,000 annually are liable to pay 5% tax. This percentage is only applicable to those individuals who are earning in between PKR 600,000 and PKR 1,200,000 per year.
While providing a detailed explanation over the budget policies for salaried persons, Hammad Azhar revealed that those individuals who are earning over PKR 1,200,000 annually and not exceeding PKR 1,800,000 are liable to pay 10% tax as well as an additional PKR 30,000 as tax.
The detailed structure of slabs for the salaried persons are as follows:
Annual earning between PKR 1,800,000 and PKR 2,500,000: 15% Tax with PKR 90,000
Annual earning between PKR 2,500,000 and PKR 3,500,000: 17.5% Tax with PKR 195,000
Annual earning between PKR 3,500,000 and PKR 5,000,000: 20% Tax with PKR 370,000
Annual earning between PKR 5,000,000 and PKR 8,000,000: 22.5% Tax with PKR 670,000
Annual earning between PKR 8,000,000 and PKR 12,000,000: 25% Tax with PKR 1,345,000
Annual earning between PKR 12,000,000 and PKR 2,500,000: 15% Tax with PKR 90,000
Annual earning between PKR 1,800,000 and PKR 30,000,000: 27.5% Tax with PKR 2,345,000
Annual earning between PKR 30,000,000 and PKR 50,000,000: 30% Tax with PKR 7,295,000
Annual earning between PKR 50,000,000 and PKR 75,000,000: 32.5% Tax with PKR 13,295,000
Annual earning over PKR 75,000,000: 35% Tax with PKR 21,420,000
Hammad Azhar has announced eight slabs for the non-salaried individuals too as part of the Budget 2019-20. These individuals would be liable for the taxation of the income over PKR 400,000 with the tax rates ranging in between 5% to 35%.