The Federal Board of Revenue (FBR) has updated Salary Tax Rates for the tax year 2022-2023. The new salary rates will be applicable from July 2022.
The FBR issued the latest withholding income tax rates for 2022-2023. FBR has made this change in Income Tax Ordinance, 2001, which was amended through Finance Act, 2022.
These rates of tax applicable on salary individuals are imposed through Section 149 of the Income Tax Ordinance, 2001.
Every person responsible for paying a salary to an employee is required to deduct tax from the amount paid. The deduction rate of withholding tax on salaried persons is the same for persons falling on the Active Taxpayers List (ATL) and non-ATL.
FBR Salary Tax Rates for the Year 2022-2023
Find below the Salary Tax Rate for the year 2022-2023:
| Sr. no | Taxable Income | Rate of Tax |
|---|---|---|
| 1 | up to Rs. 600,000 | 0% |
| 2 | Rs. 600, 001 – 1,200,000 | 2.5 % of amounts exceeding Rs. 600,000 |
| 3 | Rs. 1,200,000 – 2,400,000 | Rs. 15,000 + 12.5% of amount exceeding Rs. 1,200,000 |
| 4 | Rs. 2,400,000 – 3,600,000 | Rs. 165,000 + 20% of amount exceeding Rs. 2,400,000 |
| 5 | Rs. 3,600,001 – 6,000,000 | Rs. 405,000 + 25% of amount exceeding Rs. 3,600,000 |
| 6 | Rs. 6,000,001 – 12,000,000 | Rs. 1,005,000 + 32.5% of amount exceeding Rs. 6,000,000 |
| 7 | Amount Exceeding Rs. 12,000,000 | Rs. 2,955,000 + 35% of amount exceeding Rs. 12,000,000 |
So these are the new Salary Tax rates for the year 2022-2023.
If you wish to learn in detail about Income tax return method then must enroll in this Income Tax Return Master course, Salary Course, Business Course, Freelancer Course, or Non-Resident Pakistani.
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