Rates Of Income Tax
(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:-
1.
Where the total income does not exceed Rs. 60,000.
Nil.
2.
Where the total income exceeds Rs. 60,000 but does not exceed Rs. 150,000.
7.5% of the amount exceeding Rs. 60,000.
3.
Where the total income exceeds Rs. 150,000 but does not Rs. 300,000.
Rs. 6,750 plus 12.5% of the amount exceeding Rs. 150,000.
4.
Where the total income exceeds Rs. 300,000 but does not exceed Rs. 400,000.
Rs. 25,500 plus 20% of the amount exceeding Rs. 300,000.
5. Where the total income exceeds Rs. 400,000 but does not exceed Rs. 700,000.
Rs. 45,500 plus 25% of the amount exceeding Rs. 400,000.
6.
Where the total income exceeds Rs. 700,000.
Rs. 120,500 plus 35% of the amount exceeding Rs. 700,000.
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:-
1.
Where the total income does not exceed Rs. 100,000.
5% of total income.
2.
Where the total income exceeds Rs. 100,000 but does not exceed Rs. 200,000.
Rs. 5,000 plus 10% of the amount exceeding Rs. 100,000.
3.
Where the total income exceeds Rs. 200,000 but does not Rs. 300,000.
Rs. 15,000 plus 15% of the amount exceeding Rs. 200,000.
4.
Where the total income exceeds Rs. 300,000 but does not exceed Rs. 500,000.
Rs. 30,000 plus 20% of the amount exceeding Rs. 300,000.
5. Where the total income exceeds Rs. 500,000 but does not exceed Rs. 700,000.
Rs. 70,000 plus 25% of the amount exceeding Rs. 500,000.
6. Where the total income exceeds Rs. 700,000 but does not exceed Rs. 1,000,000.
Rs. 120,000 plus 30% of the amount exceeding Rs. 700,000.
7.
Where the total income exceeds Rs. 1,000,000.
Rs. 210,000 plus 35% of the amount exceeding Rs. 1,000,000.
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
(a)
where the total income does not exceed Rs. 50,000.
Rs. 2,500
(b)
where the total income exceeds Rs. 50,000 but does not exceed Rs. 150,000.
Rs. 2,500 plus 10% of the amount exceeding Rs. 50,000.
(c)
where the total income exceeds Rs. 150,000 but does not exceed Rs. 300,000.
Rs. 12,500 plus 20% of the amount exceeding Rs. 150,000.
(d)
Where the total income exceeds Rs. 300,000 but does not exceed Rs. 500,000.
Rs. 42,500 plus 30% of the amount exceeding Rs. 300,000.
(e)
Where the total income exceeds Rs. 500,000.
Rs. 102,500 plus 35% of the amount exceeding Rs. 500,000.
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:-
Particulars Tax Rates
Reduction in Tax Liability 1.
Where the taxable income does not exceed Rs. 60,000. Nil.
Nil
2.
Where the taxable income exceeds Rs. 60,000 but does not exceed Rs. 150,000.
7.5% of the amount exceeding Rs. 60,000.
Income between 60,001-80,000 @70%
Income between 80,001-100,000 @60%
Income between 100,001-150,000 @50%
3.
Where the taxable income exceeds Rs. 150,000 but does not Rs. 300,000.
Rs. 6,750 plus 12.5% of the amount exceeding Rs. 150,000.
Income between 150,001-200,000 @40%
Income between 200,001-300,000 @30%
4.
Where the taxable income exceeds Rs. 300,000 but does not exceed Rs. 400,000.
Rs. 25,500 plus 20% of the amount exceeding Rs. 300,000.
Income between 300,001-400,000 @20%
5. Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 700,000.
Rs. 45,500 plus 25% of the amount exceeding Rs. 400,000.
Income between 400,001-500,000 @20%
Income between 500,001-700,000 @10%
6. Where the taxable income exceeds Rs. 700,000
Rs. 120,500 plus 35% of the amount exceeding Rs. 700,000.
Income between 700,001-1,000,000 @10%
Income above 1,000,000 @5%
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:-
Particulars Tax Rates
Reduction in Tax Liability 1.
Where the taxable income does not exceed Rs. 100,000. 5% of taxable income.
Income between 50,001-60,000 @80%
Income between 60,001-80,000 @70%
Income between 80,001-100,000 @60%
2.
Where the taxable income exceeds Rs. 100,000 but does not exceed Rs. 200,000.
Rs. 5,000 plus 10% of the amount exceeding Rs. 100,000.
Income between 100,001-150,000 @50%
Income between 150,001-200,000 @40%
3.
Where the taxable income exceeds Rs. 200,000 but does not Rs. 300,000.
Rs. 15,000 plus 15% of the amount exceeding Rs. 200,000.
Income between 200,001-300,000 @30%
4.
Where the taxable income exceeds Rs. 300,000 but does not exceed Rs. 500,000.
Rs. 30,000 plus 20% of the amount exceeding Rs. 300,000.
Income between 300,001-500,000 @20%
5. Where the taxable income exceeds Rs. 500,000 but does not exceed Rs. 700,000.
Rs. 70,000 plus 25% of the amount exceeding Rs. 500,000.
Income between 500,001-700,000 @10%
6. Where the taxable income exceeds Rs. 700,000
Rs. 120,000 plus 30% of the amount exceeding Rs. 700,000.
Income between 700,001-1,000,000 @10%
Income above 1,000,000 @5%
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:-
1.
Where the taxable income does not exceed Rs. 100,000.
5% of taxable income.
2.
Where the taxable income exceeds Rs. 100,000 but does not exceed Rs. 200,000.
Rs. 5,000 plus 10% of the amount exceeding Rs. 100,000.
3.
Where the taxable income exceeds Rs. 200,000 but does not Rs. 300,000.
Rs. 15,000 plus 15% of the amount exceeding Rs. 200,000.
4.
Where the taxable income exceeds Rs. 300,000 but does not exceed Rs. 500,000.
Rs. 30,000 plus 20% of the amount exceeding Rs. 300,000.
5. Where the taxable income exceeds Rs. 500,000 but does not exceed Rs. 700,000.
Rs. 70,000 plus 25% of the amount exceeding Rs. 500,000.
6. Where the taxable income exceeds Rs. 700,000
Rs. 120,000 plus 30% of the amount exceeding Rs. 700,000.
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:-
1.
Where the taxable income does not exceed Rs. 100,000.
5% of taxable income.
2.
Where the taxable income exceeds Rs. 100,000 but does not exceed Rs. 200,000.
Rs. 5,000 plus 10% of the amount exceeding Rs. 100,000.
3.
Where the taxable income exceeds Rs. 200,000 but does not Rs. 300,000.
Rs. 15,000 plus 15% of the amount exceeding Rs. 200,000.
4.
Where the taxable income exceeds Rs. 300,000.
Rs. 30,000 plus 20% of the amount exceeding Rs. 300,000.
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 :-
a.
does not exceed Rs. 100,000.
5% of such amount;
b.
exceeds Rs. 100,000 but does not exceed Rs. 200,000.
Rs. 5,000 plus 10% of the amount exceeding Rs. 100,000;
c.
exceeds Rs. 200,000 but does not Rs. 300,000.
Rs. 15,000 plus 15% of the amount exceeding Rs. 200,000;
d.
exceeds Rs. 300,000.
Rs. 30,000 plus 20% of the amount exceeding Rs. 300,000.
To see deductible Allowances and Perquisites on Salary see What are Perquisites and How are taxed?
For every Registered Firm, the income tax shall be charged on the total income, at the following rates:-
1.
Where the total income does not exceed Rs. 30,000.
Nil
2.
Where the total income exceeds Rs. 30,000 but does not exceed Rs. 80,000.
5 % of the amount exceeding Rs. 30,000.
3.
Where the total income exceeds Rs. 80,000 but does not Rs. 130,000.
Rs. 2,500 plus 10% of the amount exceeding Rs. 80,000.
4.
Where the total income exceeds Rs. 130,000 but does not exceed Rs. 180,000.
Rs. 7,500 plus 15% of the amount exceeding Rs. 130,000.
5. Where the total income exceeds Rs. 180,000.
Rs. 15,000 plus 25% of the amount exceeding Rs. 180,000.
Note:
The Rate of Surcharge for income below Rs. 100,000/- is Rs. 300.
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:-
(a)
in the case of a banking company;
50 per cent
(b)
in the case of a public company other than a banking company; and
35 per cent
(c)
in the case of any other company.
45 per cent
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:-
(a)
in the case of a banking company;
58 per cent
(b)
in the case of a public company other than a banking company; and
33 per cent
(c)
in the case of any other company.
43 per cent
Note:
The Rate of Surcharge @5% is payable from assessment year 2000-2001 (i.e. income year 1999-2000).
