FBR income tax slabs for 2020-21: check applicable taxes on income

When it announced the budget for Fiscal Year 2020-21 in June 2020, the Pakistan Tehreek-i-Insaf led government had left income taxes unchanged from last year in a bid to avoid placing any additional burden on salaried taxpayers.

The income tax slabs for 2020-21 are therefore as follows:

Income tax slabs for salaried persons:

In the case of salaried individuals, there are 11 tax slabs with a progressive taxation rate ranging from 5% to 35% of income.

To find out what tax rate is applicable to you, multiply your gross monthly salary by 12 and match it with the corresponding slab. 

• For income above Rs600,000 but not exceeding Rs1,200,000, individuals will pay 5% of the amount exceeding Rs600,000.
• For income above Rs1,200,000 but not exceeding Rs1,800,000, individuals will pay Rss30,000 plus 10% of the amount exceeding Rs1,200,000.
• For income above Rs1,800,000 but not exceeding Rs2,500,000, individuals will pay Rs90,000 plus 15% of the amount exceeding Rs1,800,000.
• For income above Rs2,500,000 but not exceedingRs3,500,000, individuals will pay Rs195,000 plus 17.5% of the amount exceeding Rs2,500,000.
• For income above Rs3,500,000 but not exceeding Rs5,000,000, individuals will pay Rs370,000 plus 20% of the amount exceeding Rs3,500,000.
• For income above Rs5,000,000 but not exceeding Rs8,000,000, individuals will pay Rs670,000 plus 22.5% of the amount exceeding Rs5,000,000.
• For income above Rs8,000,000 but not exceeding Rs12,000,000, individuals will pay Rs1,345,000 plus 25% of the amount exceeding Rs8,000,000.
• For income above Rs12,000,000 but not exceedingRs30,000,000, individuals will pay Rs2,345,000 plus 27.5% of the amount exceeding Rs12,000,000.
• For income above Rs30,000,000 but not exceeding Rs50,000,000, individuals will pay Rs7,295,000 plus 30% of the amount exceeding Rs30,000,000.
• For income above Rs50,000,000 but not exceeding Rs75,000,000, individuals will pay Rs13,295,000 plus 32.5% of the amount exceeding Rs50,000,000.
• For income above Rs75,000,000, individuals will pay Rs21,420,000 plus 35% of the amount exceeding Rs75,000,000.

Income tax slabs for non-salaried persons

For non-salaried persons deriving income exceeding Rs400,000, eight taxable slabs of income with tax rates ranging from 5% to 35% are being introduced in the following manner:

• Where taxable income does not exceed Rs400,000, individuals will pay no tax.
• For income above Rs400,000 but not exceeding Rs600,000, individuals will pay 5% of the amount exceeding Rs400,000.
• For income above Rs600,000 but not exceeding Rs1,200,000, individuals will pay Rs10,000 plus 10% of the amount exceeding Rs600,000.
• For income above Rs1,200,000 but not exceeding Rs2,400,000, individuals will pay Rs70,000 plus 15% of the amount exceeding Rs1,200,000.
• For income above Rs2,400,000 but not exceeding Rs3,000,000, individuals will pay Rs250,000 plus 20% of amount exceeding 2,400,000.
• For income above Rs3,000,000 but not exceeding Rs4,000,000, individuals will pay Rs370,000 plus 25% of the amount exceeding Rs3,000,000.
• For income above Rs4,000,000 but not exceeding Rs6,000,000, individuals will pay Rs620,000 plus 30% of the amount exceeding Rs4,000,000
• For income above Rs6,000,000, but not exceeding Rs1,220,000 plus 35% of the amount exceeding Rs6,000,000.

The last date for filing income tax returns for 2020 is December 8, 2020, according to a notification issued by FBR.