Reduction in rates of tax for AOPs
[Paragraph (2), Division I, Part I of the First Schedule
Reduction in rates of tax for AOPs: Prior to the Finance Act, 2018 the tax rates applicable to Association of Persons (AOP’s) and non-salaried individuals were clubbed together and comprised seven progressive tax slabs as provided in paragraph (1), Division I, Part I of the First Schedule. Through the Finance Act, 2018, separate tax rates have been provided for AOP’s in paragraph (2), Division I, Part I of the First Schedule which are as under:-
| Sr. # | Taxable Income | Rate of Tax |
| 1 | Where the taxable income does not exceed Rs.400,000/- | 0% |
| 2 | Where the taxable income exceeds Rs.400,000/- but does not exceed Rs.1,200,000/- | 5% of the amount exceeding Rs.400,000/- |
| 3 | Where the taxable income exceeds Rs.1,200,000/- but does not exceed Rs.2,400,000/- | Rs.40,000/- +10% of the amount exceeding Rs.1,200,000/- |
| 4 | Where the taxable income exceeds Rs.2,400,000/- but does not exceed Rs.3,600,000/- | Rs.160,000/-+15% of the amount exceeding Rs.2,400,000/- |
| 5 | Where the taxable income exceeds Rs.3,600,000/- but does not exceed Rs.4,800,000/- | Rs.340,000/- +20% of the amount exceeding Rs.3,600,000/- |
| 6 | Where the taxable income exceeds Rs.4,800,000/- but does not exceed Rs.6,000,000/- | Rs.580,000/-+25% of the amount exceeding Rs.4,800,000/- |
| 7 | Where the taxable income exceeds Rs.6,000,000/- | Rs.880,000/+30% of the amount exceeding Rs.6,000,000/- |
Read more blogs here and to contact FBR click here.
