TAX RATES TAX YEAR 2014

Sajeel Shahid| 0321 5250607 | Income Tax Personal Notes

Page 1 of 3
PART I

INDIVIDUALS (SALARIED PERSON)
(I.T.O: 1
st
Schedule, Part I, Division I)

S.No. Taxable Income Rate of tax
1. Where the taxable income does not exceed Rs.400,000

0%
2. Where the taxable income exceeds Rs.400,000 but does not exceed Rs.750,000

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

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

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

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

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

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

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

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

Rs.600,000 + 27.5% of the amount exceeding
Rs.4,000,000
11. Where the taxable income exceeds Rs.7,000,000 Rs.1,425,000 + 30% of the amount exceeding
Rs.7,000,000]

PART II

INDIVIDUALS AND ASSOCIATION OF PERSONS (NON-SALARIED PERSON)
(I.T.O: 1
st
Schedule, Part I, Division I)


S.No. Taxable income Rate of tax
1. Where the taxable income does not exceed Rs. 400,000

0%
2. Where the taxable income exceeds Rs.400,000 but does not exceed Rs.750,000

10% of the amount exceeding Rs.400,000
3. Where the taxable income exceeds Rs.750,000 but does not exceed Rs.1,500,000

Rs.35,000 + 15% of the amount exceeding
Rs.750,000

4. Where the taxable income exceeds Rs.1,500,000 but does not exceed Rs.2,500,000

Rs.147,500 + 20% of the amount exceeding
Rs.1,500,000

5. Where the taxable income exceeds Rs.2,500,000 but does not exceed Rs.4,000,000

Rs.347,500 + 25% of the amount exceeding
Rs.2,500,000

6. Where the taxable income exceeds Rs.4,000,000 but does not exceed Rs.6,000,000

Rs.722,500 + 30% of the amount exceeding
Rs.4,000,000

7. Where the taxable income exceeds Rs.6,000,000 Rs.1,322,500 + 35% of the amount exceeding
Rs.6,000,000]
TAX RATES TAX YEAR 2014
Sajeel Shahid| 0321 5250607 | Income Tax Personal Notes
Page 2 of 3
PART III

INCOME FROM PROPERTY

S.No. Gross amount of rent Rate of tax
1. Where the gross amount of rent does not exceed Rs.150,000 Nil
2. Where the gross amount of rent exceeds Rs.150,000 but does not exceed
Rs.1,000,000
10 % of the gross amount exceeding Rs.150,000.
3. Where the gross amount of rent exceeds Rs. 1,000,000 Rs. 85,000 + 15% of the gross amount exceeding Rs.
1,000,000.


PART IV

CAPITAL GAINS (Section 37)

A. On disposal of Securities
S.No. Period. Rate of tax.
1. Where holding period of a security is less than six months.

10%
2. Where holding period of a security is more than six months but less than twelve months.

8%
3. Where holding period of a security is twelve months or more. 0%

B. On disposal of Immovable Property

S.No Period Rate of Tax
1. Where holding period of Immovable property is up to one year. 10%

2. Where holding period of Immovable property is more than one year but not more than two
years.
5%


PART V

DEDUCTION OF TAX AT SOURCE
(See Division III of Part V of Chapter X)

S.No Item Rate of Tax
1. Profit on Debt

10%

2. Prizes and Winnings (Individual)

Prizes and Winnings (Company)
15%

20%


TAX RATES TAX YEAR 2014
Sajeel Shahid| 0321 5250607 | Income Tax Personal Notes
Page 3 of 3
PART V

Advance TAX Deduction
S.No Item Rate of Tax
1. Brokerage and Commission 10%

2. Cash withdrawal from a bank

0.3% of Amount withdrawal
3 Purchase of Air Ticket 5% of the gross amount of air
ticket
4 sale or transfer of Immovable property

0.5% of the gross amount of Sale
Price

NEW CHANGES IN I.T.O 2013-2014

EXEMPTION NOT ALLOWED
Perquisite of free or concessional passage
[Clause (53A) of Part I of the Second Schedule]

The perquisite of free or concessional passage provided by transporters including airlines to its employees
(including the members of their households and dependants) is not allowed as exemption from the Salary
income.
PROFIT ON DEBT
[Clause (59)(iv)(a) of Part IV of the Second Schedule]

In the case of any resident individual, no exemption will be provided on income or profits paid on Defense
Saving Certificates, Special Savings Certificates, Savings Accounts or Post Office Savings Accounts, or Term
Finance Certificates (TFCs).

In the case of any resident individual, no tax shall be deducted from income or profits paid on Investment
in monthly income Savings Accounts Scheme of Directorate of National Savings, where monthly instalment
in an account does not exceed one thousand rupees.

REDUCTION IN TAX LIABILITY
Tax payable by a full time teacher or a researcher
[Clause (2) of Part III of the Second Schedule]

The tax payable by a full time teacher or a researcher, employed in a non profit education or research
institution duly recognized by Higher Education Commission, a Board of Education or a University recognized
by the Higher Education Commission, including government training and research institution is reduced by an
amount equal to 40 % of tax payable on his income from salary.

FLYING AND SUBMARINE ALLOWANCES
[Clause (1) of Part III of the Second Schedule]

Any amount received as following allowances shall be taxed at 2.5 per cent as a separate block of income
[provided such allowance shall not exceed an amount equal to basic salary].

DEPRECIATION - Initial Depreciation Allowance is 25% of value of Asset