FBR Salary Tax Rates for Year 2022-2023

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. noTaxable IncomeRate of Tax
1up to Rs. 600,0000%
2Rs. 600, 001 – 1,200,0002.5 % of amounts exceeding Rs. 600,000
3Rs. 1,200,000 – 2,400,000Rs. 15,000 + 12.5% of amount exceeding Rs. 1,200,000
4Rs. 2,400,000 – 3,600,000Rs. 165,000 + 20% of amount exceeding Rs. 2,400,000
5Rs. 3,600,001 – 6,000,000Rs. 405,000 + 25% of amount exceeding Rs. 3,600,000
6Rs. 6,000,001 – 12,000,000Rs. 1,005,000 + 32.5% of amount exceeding Rs. 6,000,000
7Amount Exceeding Rs. 12,000,000Rs. 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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