Lightening the Load

INCOME TAX CARD 2017

Amended as per Finance Act 2016

Muhammad Yusuf Amin Associates

Tax Advisors & Consultants
E: ameentax@gmail.com

TAX CARD 2017

DIRECT TAXES RATES

Salaried Taxpayer

Section 12

S. No.

Taxable Income

Rate of tax

Where the taxable income does not

exceed Rs.400,000

0%

Where
the
taxable
income
exceedsRs.400,000but does not exceed
Rs.500,000

2% of the amount
exceeding Rs.400,000

Where the taxable income exceeds

Rs.500,000 but does not exceed
Rs.750,000

Rs.2,000 + 5% of the
amount exceeding
Rs.500,000

Where the taxable income exceeds

Rs.750,000 but does not exceed
Rs.1,400,000

Rs.14,500 + 10% of the

amount exceeding
Rs.750,000

Where the taxable income exceeds

Rs.1,400,000 but does not exceed
Rs.1,500,000

Rs.79,500 + 12.5% of the

amount exceeding
Rs.1,400,000

Where the taxable income exceeds

Rs.1,500,000 but does not exceed
Rs.1,800,000

Rs.92,000 + 15% of the

amount exceeding
Rs.1,500,000

Where the taxable income exceeds

Rs.1,800,000 but does not exceed
Rs.2,500,000

Rs.137,000 + 17.5% of the

amount exceeding
Rs.1,800,000

Where the taxable income exceeds

Rs.2,500,000 but does not exceed
Rs.3,000,000

Rs.259,500 + 20% of the

amount exceeding
Rs.2,500,000

Where the taxable income exceeds

Rs.3,000,000 but does not exceed
Rs.3,500,000

Rs.359,500 +22.5% of the

amount exceeding
Rs.3,000,000

10

Where the taxable income exceeds

Rs.3,500,000 but does not exceed
Rs.4,000,000

Rs.472,000 + 25% of the

amount exceeding
Rs.3,500,000

11

Where the taxable income exceeds

Rs.4,000,000 but does not exceed
Rs.7,000,000

Rs.597,000 + 27.5% of the

amount exceeding
Rs.4,000,000

12

Where the taxable income exceeds

Rs.7,000,000

Rs.1,422,000 + 30% of the

amount exceeding
Rs.7,000,000

Where the income of an individual chargeable under the head- salary exceeds fifty percent of his
taxable income, the rate of tax to be applied shall be salary tax rates.

Muhammad Yusuf Amin & Associates

Tax Advisors & Consultants

Lightening the Load

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TAX CARD 2017

Individual & AOPs

Section 18

S. No.

Taxable Income

Rate of tax

Where the income does not exceed

Rs.400,000

0%

Where the taxable income exceeds

Rs.400,000 but does not exceed
Rs.500,000

7% of the
amount exceeding
Rs.400,000

Where the taxable income exceeds

Rs.500,000 but does not exceed
Rs.750,000

Rs.7,000 + 10% of the

amount exceeding
Rs.500,000

Where the taxable income exceeds

Rs.750,000 but does not exceed
Rs.1,500,000

Rs.32,000 + 15% of the

amount exceeding
Rs.750,000

Where the taxable income exceeds

Rs.1,500,000 but does not exceed
Rs.2,500,000

Rs.144,500 + 20% of the

amount exceeding
Rs.1,500,000

Where the taxable income exceeds

Rs.2,500,000 but does not exceed
Rs.4,000,000

Rs.344,500 + 25% of the

amount exceeding
Rs.2,500,000

Where the taxable income exceeds

Rs.4,000,000 but does not exceed
Rs.6,000,000

Rs.719,500 + 30% of the

amount exceeding
Rs.4,000,000

Where the taxable income exceeds

Rs.6,000,000

Rs.1,319,500 + 35% of the

amount exceeding
Rs.6,000,000

Companies

Section 18

Type

Rate of tax

Banking Company

35%

Company other than banking company

31%

Small Company as defined in section 2

25%

Super Tax

Section 4B

Person

Rate of tax

Banking Company

4% of the income

Person, other than a banking company, having

income equal to or exceeding Rs.500 million

3% of the income

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Tax Advisors & Consultants

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TAX CARD 2017

Profit on Debt
(Every Person other than a company)
S. No.
1

Section 7B

Profit on Debt
Rate of tax
Where profit on debt does not exceed
10%
Rs.25,000,000
Where profit on debt exceeds Rs.2,500,000 + 12.5% of the
Rs.25,000,000 but does not exceed
amount exceeding
Rs.50,000,000
Rs.25,000,000
Where profit on debt exceeds Rs.5,625,000 + 15% of the
Rs.50,000,000
amount exceeding
Rs.50,000,000

Tax on Income from Property

(In the case of Individual & AOPs)
S. No.
1

Gross amount of rent

Where the gross amount of rent does
not exceed Rs.200,000.
Where the gross amount of rent
exceeds Rs.200,000 but does not
exceed Rs.600,000.
Where the gross amount of rent
exceeds Rs.600,000 but does not
exceed Rs.1,000,000.
Where the gross amount of rent
exceeds Rs.1,000,000 but does not
exceed Rs.2,000,000.
Where the gross amount of rent
exceeds Rs.2,000,000.

Section 15

Rate of tax
Nil
5 percent of the gross
amount exceeding
Rs.200,000
Rs.20,000 plus 10 percent of
the gross amount exceeding
Rs.600,000
Rs.60,000 plus 15 percent of
the gross amount exceeding
Rs.1,000,000
Rs.210,000 plus 20 percent
of the gross amount
exceeding Rs.2,000,000

Capital Gains on Disposal of Immoveable Property

Section 37

S. No.

Rate of
tax

Period

For immovable property allotted to the following persons:

(a) a seller, if the seller is dependent of:
(i) a Shaheed belonging to Pakistan Armed Forces; or
(ii)

a person who dies while in the service of the Pakistan Armed Forces
or the Federal and Provincial Governments; and

(b) to the first sale of immovable property which has been acquired or allotted
as an original allottee, duly certified by the official allotment authority.

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Tax Advisors & Consultants

Lightening the Load

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TAX CARD 2017

S. No.

Period

Immovable property is held irrespective of the holding

period.

Rate of
tax
0%

For immovable property acquired on or after July 1, 2016, other than those
mentioned against S. No.1
2

Where holding period of immovable property is up to 1

year.

10%

Where holding period of immovable property is more

than 1 year but less than 2 years.

7.5%

Where holding period of immovable property is more

than 2 years but less than 3 years.

5%

Where holding period of immovable property is more

than 3 years.

0%

For immovable property acquired before July 1, 2016, other than those
mentioned against S. No.1
6

Where holding period of immovable property is up to 3

years.

5%

Where holding period of immovable property is more

than 3 years.

0%

Provided that rate of tax to be paid shall be reduced by 50% on the first sale of
immovable property acquired or allotted to ex-servicemen and serving
personnel of Armed Forces or ex-employees or serving personnel of Federal
and Provincial Governments, being original allottees of the immovable property,
duly certified by the allotment authority.
The gain arising on the disposal of immovable property by a person in a tax year
to a Rental REIT Scheme shall be taxed at the rate of 5 percent up to thirtieth
day of June, 2019, irrespective of the holding period.

Capital Gains on Disposal of Securities

S. No.
1
2
3

Period

Section 37A

Rate of tax
Filer NonFiler
15%
18%

Where holding period of a security is less than 12

months
Where holding period of a security is 12 months or 12.5%
more but less than 24 months
Where holding period of a security is 24 months or 7.5%
more but the security was acquired on or after 1st
July, 2012

16%
11%

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Tax Advisors & Consultants

Lightening the Load

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TAX CARD 2017

S. No.

Rate of tax
Filer NonFiler
0%
0%

Period

Where security was acquired before 1st July, 2012

Future commodity contracts entered into by the

members of Pakistan Mercantile Exchange

5%

Tax on Builders

5%

Section 7C

(A) Karachi, Lahore (B) Hyderabad, Sukkur, (C)

Urban Areas not
and Islamabad
Multan,
Faisalabad, specified in A and B
Rawalpindi, Gujranwala,
Sahiwal,
Peshawar,
Mardan,
Abbotabad,
Quetta

For commercial buildings

Rs.210/Sq Ft

Rs.210/Sq Ft

Rs.210/ Sq Ft

Up to 750

Rs.20

For residential buildings

Area in Sq. ft
Up to 750
Rs.15
Up to 750

751 to 1500

Rs.40

751 to 1500

Rs.35

751 to 1500

Rs.25

1501 & more

Rs.70

1501 & more

Rs.55

1501 & more

Rs.35

Tax on Developers

Rs.10

Section 7D

(A) Karachi, Lahore (B) Hyderabad, Sukkur, (C)

Urban Areas not
and Islamabad
Multan,
Faisalabad, specified in A and B
Rawalpindi, Gujranwala,
Sahiwal,
Peshawar,
Mardan,
Abbotabad,
Quetta

For commercial Plots

Rs.210/Sq Yd

Rs.210/ Sq Yd

Up to 120

Rs.20

For residential Plots

Area in Sq Yd
Up to 120
Rs.15

121 to 200

Rs.40

121 to 200

Rs.35

201 and more

Rs.70

201 and more

Rs.55

Rs.210/ Sq Yd

Up to 120

Rs.10

121 to 200

Rs.25

201 and more

Rs.35

Muhammad Yusuf Amin & Associates

Tax Advisors & Consultants

Lightening the Load

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TAX CARD 2017

Minimum Tax

Section 113

S. No.

Person(s)

Minimum
Tax as
percentage
of the
persons
turnover for
the year

(a) Oil marketing companies, Oil refineries, Sui

Southern Gas Company Limited and Sui Northern
gas Pipelines Limited (for the cases where annual
turnover exceeds rupees one billion)

0.5%

(b) Pakistan Airlines; and

(c) Poultry industry including poultry breeding, broiler
production, egg production and poultry feed
production.
(d) Dealers or distributors of fertilizers.
2

(a) Distributors of pharmaceutical products,

moving consumer goods and cigarettes;

fast

(b) Petroleum agents and distributors who

registered under the Sales Tax Act, 1990;

are

0.2%

(c) Rice mills and dealers; and

(d) Flour mills.
3

Motorcycle dealers registered under the Sales Tax Act,

1990.

In all other cases.

Disabled Taxpayer &

Senior Citizen

0.25%
1%

Paragraph (1B) Division I of Part I of the First Schedule

Where the taxable income in a tax year, other than income on which the
deduction of tax is final, does not exceed Rs.1,000,000 of a person(i)

holding a National Database Registration Authoritys Computerized

National Identity Card for disabled persons; or

(ii)

a taxpayer of the age of not less than 60 years on the first day of
that tax year, the tax liability on such income shall be reduced by
50%.

Muhammad Yusuf Amin & Associates

Tax Advisors & Consultants

Lightening the Load

Page 7 of 9

TAX CARD 2017

RATE OF TAX ON CERTAIN PAYMENTS TO NON-RESIDENTS

Type
Royalty or fee for technical services(Section 6)
Shipping income(Section 7)

Rate of tax
15% of the gross amount
8% of the gross amount
received or receivable

Air transport income(Section 7)

3% of the gross amount

received or receivable

REDUCTION IN TAX LIABILITY

Teacher or Researcher

Clause 2 of Part III of the Second Schedule

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

REDUCTION IN TAX RATES

Services Rendered
outside Pakistan

Clause 3(a) of Part II of the Second Schedule

Construction Contracts
executed outside Pakistan
REDUCTION IN TAX LIABILITY
The tax in respect of income from services rendered outside Pakistan and
construction contracts executed outside Pakistan shall be charged at the
following rates, provided that receipts from services and income from contracts
are brought into Pakistan in foreign exchange through normal banking
channel.

Income from services rendered outside Pakistan shall be 50% of

the following rates:
(a) In the case of a company, 8% of the gross amount payable, if the
company is a filer and 12% if the company is a non-filer.
(b) In any other case, 10% of the gross amount payable, if a person is a
filer and 15% if the person is a non-filer.

Muhammad Yusuf Amin & Associates

Tax Advisors & Consultants

Lightening the Load

Page 8 of 9

TAX CARD 2017

Contracts executed outside Pakistan shall be 50% of the following

rates:
(a) In the case of a company, 7% of the gross amount payable, if the
company is a filer and 10% if the company is a non-filer.
(b) In any other case, 7.5% of the gross amount payable, if a person is
a filer and 10% if the person is a non-filer.

Muhammad Yusuf Amin & Associates

Tax Advisors & Consultants

Lightening the Load

Page 9 of 9