Reduction and elimination of Super Tax

Reduction and elimination of Super Tax

[Division IIA, Part I of the First Schedule]

Reduction and elimination of Super Tax: Super Tax was levied through the Finance Act, 2015 @ 4% on the income of banking companies and @ 3% on the income of persons other than banking companies.

Rate of 3% was only applicable if the income was above Rs. 500 million in a year. Through the Finance Act, 2018, Super Tax has been omitted in a phased manner, as depicted here under:-

Tax year 2018 Tax year 2019 Tax year 2020 Tax year 2021
Banking company 0 4 3 2
Person other than a banking company having income of Rs.500 million 3 2 1 0

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