Taxation Management (FIN 623) VU

Application of Tax Rates for the Tax Year 2016-17

Dear Student,

You are advised to use following rate of taxes for the calculation of taxable income.
1. Tax rates for Non-Salaried Individual or AOP

Sr. No. Taxable Income Rate

1. Up to Rs. 400,000 0%
2. Rs. 400,001 to Rs. 500,000 7% of amount exceeding Rs. 400,000
3. Rs, 500,001 to Rs. 750,000 Rs. 7,000 + 10% of amount exceeding Rs. 500,000
4. Rs. 750,001 to Rs. 1,500,000 Rs. 32,000 + 15% of amount exceeding Rs. 750,000
5. Rs. 1,500,001 to Rs. 2,500,000 Rs. 144,500 + 20%of amount exceeding Rs. 1,500,000
6. Rs. 2,500,001 to Rs. 4,000,000 Rs. 344,500 + 25% of amount exceeding Rs. 2,500,000
7. Rs. 4,000,000 Rs. 6,000,000 Rs. 719,500 + 30% of amount exceeding Rs. 4,000,000
8. Over Rs. 6,000,000 Rs. 1,319,500 + 35% of amount exceeding Rs. 6,000,000

2. In case of Salaried Individual (where the income of an individual chargeable under the head
salary exceeds fifty per cent of his taxable income)

Sr. No. Taxable Income Rate

1. Up to Rs. 400,000 0%
2. Rs. 400,001 to Rs. 500,000 2% of amount exceeding Rs. 400,000
3. Rs, 500,001 to Rs. 750,000 Rs. 2,000 + 5% of amount exceeding Rs. 500,000
4. Rs. 750,001 to Rs. 1,400,000 Rs. 14,500 + 10% of amount exceeding Rs. 750,000
5. Rs. 1,400,001 to Rs. 1,500,000 Rs. 79,500 + 12.5%of amount exceeding Rs. 1,400,000
6. Rs. 1,500,001 to Rs. 1,800,000 Rs. 92,000 + 15% of amount exceeding Rs. 1,500,000
7. Rs. 1,800,001 to Rs. 2,500,000 Rs. 137,000 + 17.5% of amount exceeding Rs. 1,800,000
8. Rs. 2,500,001 to Rs. 3,000,000 Rs. 259,500 + 20% of amount exceeding Rs. 2,500,000
9. Rs. 3,000,001 to Rs. 3,500,000 Rs. 359,500 + 22.5% of amount exceeding Rs. 3,000,000
10. Rs. 3,500,001 to Rs. 4,000,000 Rs. 472,000 + 25% of amount exceeding Rs. 3,500,000
11. Rs. 4,000,001 to Rs. 7,000,000 Rs. 597,000 + 27.5% of amount exceeding Rs. 4,000,000
12. Over Rs. 7,000,000 Rs. 1,422,000 + 30% of amount exceeding Rs. 7,000,000

3. Tax rates for companies

Sr. No. Type of Company Rate

1. Public Company 31%
2. Private Company 31%
3. Banking Company 31%
4. Modaraba Company 25%
5. Small Company 25%

4. Benchmark rate for the Tax Year 2016-17 is 10%.

"Wishing You Best of Luck for the post mid-term Semester activities"

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