Govt likely to lower taxable income limit in budget: sources

ISLAMABAD: The government is likely to announce higher taxes for salaried class by lowering the  taxable income limit in budget being announced on Tuesday (today), ARY News reported.

According to sources, people having annual income above Rs.400,000, will likely to be brought back in the tax net.

Those having annual income in the range between four to five Lac will pay one percent of their income and the people earning between five to six Lac would likely to pay two percent of earning, sources said.

Salaried employees earning between six to seven Lac would have to pay three pct of their income and those having income between seven to eight Lac will pay four pct income tax, sources said.

In the income tax proposal people earning eight to 10 Lac will pay five percent and those in 10-12 Lac income range will pay 6.25 pct tax on their income, according to sources.

Sources in the know of the matter said that the employees having annual income between 1.5 to 1.8 annual income would have to pay 8.75 % income tax.

An annual income upto four Lac will be out of the tax range, while the income above Rs.400,000 to 500,000 would have 83 rupees monthly income tax.

The people earning between five to six Lac would have to pay Rs. 250 monthly income tax.

Salaried employees earning between six to seven Lac in a year would have to pay Rs. 500 monthly income tax.

Employees having income between seven to eight Lac will pay Rs. 833 monthly income tax.

Those earning eight to 10 Lac will pay Rs. 1667 monthly income tax, while those having income between 15-18 Lac range will pay 6771 monthly income tax.

Previously, Rs1,000 tax was imposed on people who made annual income between Rs 400,000-800,000 range.

In the last year’s budget, people who made over Rs 1.2 million a year were given a tax break of Rs 59,500. This break might be ended in the new budget. Similarly, people earning Rs 1.8 million a year might not see the Rs 107,000 tax concession they had earlier.