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THE FIRST SCHEDULE
(See Section 9, 10 and 50)
RATE OF INCOME TAX
(A) In the case of every individual, unregistered firm, association of persons, Hindu undivided family and artificial juridical person referred to in clause (32) of section 2, not being a case to which paragraph AA or paragraph B of this part applies the income tax shall be charged on the total income, excluding income to which section 80B, 80C and 80CC apply, at the following rates:-
| 1. Where the total income does not exceed Rs. 100,000. | 5% of total income. |
| 2. Where the total income exceeds Rs. 100,000 but does not exceed Rs. 200,000 | Rs. 5,000 plus 10% of the amount exceeding Rs. 100,000. |
| 3. Where the total income exceeds Rs. 200,000 but does not exceed Rs. 300,000. | Rs. 15,000 plus 15% of the amount exceeding Rs. 200,000. |
| 4. Where the total income exceeds Rs. 300,000 but does not exceed Rs. 500,000. | Rs. 30,000 plus 20% of the amount Exceeding Rs. 300,000,"; |
| 5. Where the total income exceeds Rs. 500,000 but does not exceeds Rs. 700,000 | Rs. 70,000 plus 25% of the amount Exceeding Rs. 500,000 |
| 6. Where the total income exceeds Rs. 700,000 but does not exceed Rs. 1,000,000. | Rs. 120,000 plus 30% of the amount Exceeding Rs. 700,000. |
| 7. Where the total income exceeds Rs. 1,000,000. | Rs. 210,000 plus 35% of the amount Exceeding Rs. 1,000,000,"; |
Provided that-
(a) no income tax shall be payable by an assessee where his total income does not exceed-
(i) Rs. 50,000 in case the total income consists of, or includes, any income chargeable
under the head "salary", and such income constitutes more than 50% of his total
income;
(ii) [omitted]
(iii) Rs. 40,000 in other cases.
(b) The income tax payable shall be reduced by-
(i) Rs. 2500, in case the total income consists of, or includes, any income chargeable
under the head "salary", and such income constitutes more than 50% of his total
income;
(ii) Rs. 3000, in the case
of a working woman where the total income consists of, or includes, any income chargeable
under the head "salary" (excluding salary received as director of a company),
and such income constitutes more than 50% of her total income;
(iii) Rs. 2000, in other cases; and
(iv) Special tax rebate of an amount equal to 50%
of the tax payable by an assessee of 65 years of age or above as on first day of the
relevant income year and earning income upto Rs. 200,000, in addition to any other rebate
admissible under the law.
(c)
(d) notwithstanding anything contained in this Ordinance, no rebate for any
allowance under sections 39, 40, 41, [ ] 43, 44, 44A or
46 shall be admissible;
(e) notwithstanding anything contained in this Ordinance, the rebate for any allowance
under section 47 shall be computed at the average of tax and allowed accordingly;
(f) where the total income includes any income from a share of the income, profits and
gains of a firm to which paragraph C of Part II applies, such portion of the super tax
payable under the said paragraph as bears to the total amount of such super tax the same
proportion as his share of income, profits and gains of the firm bears to the total income
of the firm shall be added to the income tax payable by such partner under this paragraph,
and, if the sum so arrived at exceeds 20% of the total income of such partner (including
his share of income, profits and gains of the firm before the deduction of super tax), the
amount of income tax payable by him under this paragraph shall be reduced by the amount of
such excess; and
(g) in the case of an assessee whose income consisting of, or including any income
chargeable under the head "salary", (inclusive) of allowances and perquisites)
exceeds Rs. 300,000, income tax shall be charged in respect of income representing
allowances and perquisites, at the following rates: Where the amount representing the
value of allowances and perquisites :
Provided further that nothing contained in this clause shall
apply in the case of any assessee for my assessment valid commencing on or after the first
day of July, 2000;
| 1. does not exceed Rs. 100,000 | 3% of such amount |
| 2. exceeds Rs. 100,000 but does not exceed Rs. 200,000. | Rs. 3,000 plus 5% of such amount exceeding Rs. 100,000 |
| 3. exceeds Rs. 200,000 but does not exceed Rs. 300,000 | Rs. 8,000 plus 10% of such amount exceeding Rs. 200,000 |
| 4. exceeds Rs. 300,000. | Rs. 18,000 plus 15% of such amount exceeding Rs. 300,000: |
Provided that for the assessment year 1997-98
(a) the tax liability of an assessee in whose case valuation of perquisites, allowances
and benefits for the purposes of computing income under the head "salary" is
made under sub-rule (IA) of rule 3 of the Income Tax Rules, 1982, shall be:
(i) the tax computed on total income on the basis of valuation of perquisites under
sub-rule (1) of rule 3 of the said Rules;
(ii) three per cent of the amount representing the difference between the value of
perquisites, benefits and allowances computed under sub-rule (1A) and the value computed
under sub-rule (1) of the rule 3 said Rules; and
(b) for the purposes of computing the income chargeable under the head "Salary",
the value of perquisites, allowances and benefits in the case of employees of Pakistan
International Airlines and journalists covered under the Wage Board Awards shall be
computed under the provisions of sub-rule (1) of the rule 3 of the said Rules.
(h) Notwithstanding anything in clause
(g), for the purpose of assessment for the assessment year 1999-2000, in the case of an
assessee whose income consisting of, or including any income chargeable under the head
"Salary" (inclusive of allowances and perquisites) exceeds Rs. 300.000, income
tax shall be charged in respect of income representing allowances and perquisites, at the
following rates:
Where the amount representing the value of allowances and perquisites,-
| (a) does not exceed Rs. 100,000 | 5% of such amount; |
| (b) exceeds Rs. 100.000 but
does not exceed Rs. 200,000 |
Rs. 5,000 plus 10% of the amount exceeding Rs. 100,000; |
| (c) exceeds Rs. 200,000 but does not exceed Rs. 300,000 | Rs. 15,000 plus 15% of the amount exceeding Rs. 200,000; |
| (d) exceeds Rs. 300,000 | Rs. 30,000 plus 20% of the amount exceeding Rs. 300,000; and |
(i) For the purpose of deduction of tax at source under
sub-section (1) of section 50, the tax in respect of the income for the financial year
1998-1999 covered by clause (h) shall be computed at the rates specified in that clause.
(j) For the purposes of assessment, where the total income of an
assessee comprises or includes any income chargeable under the head "salary" and
such income is more than fifty per cent of his total income, the rates specified in this
paragraph shall be effective from the assessment year commencing on or after the first day
of July, 2000;
Provided further that in the said cases, the entry at serial number 7 in this paragraph,
shall have effect as if for the figure "35", the figure "30" was
substituted;
Provided further that for the purposes of deduction of tax from salary under sub-section
(1) of section 50, the rates specified in this paragraph shall, subject to the first
proviso, apply in respect of income for the income year 1999-2000 and thereafter.
Explanation.-- For the removal of doubt, it is hereby declared that for the purposes of
assessment for the assessment year 1999-2000, the rates of tax applicable to aforesaid
cases shall be the same as given in this paragraph as it stood before its amendment,
through Finance Act, 1999, and in clause (h) in respect of the income representing
allowances and perquisites;
A1.Notwithstanding
anything contained in paragraph A, in the case of every individual, unregistered firm,
association of persons, Hindu undivided family and artificial juridical person referred to
in clause (32) of section 2, not being a case to which paragraph B of this part applies,
the income tax shall be charged on the total income, excluding income to which section
80B, 80BB, 80C, 80CC or 80CD apply, for any assessment year commencing on or after the
first day of July, 2002, at the following rates:
| (1) where the total income does not exceed Rs.60,000 | Nil |
| (2) where the total income exceeds Rs.60,000 but does not exceed Rs.150,000 | 7.5% of the amount exceeding Rs.60,000; |
| (3) where the total income exceeds Rs.150,000 but does not exceed Rs.300,000 | Rs.6,750 plus 12.5% of the amount exceeding Rs.150,000; |
| (4) where the total income exceeds Rs.300,000 but does not exceed Rs.400,000 | Rs.25,500 plus 20% of
the amount exceeding Rs.300,000; |
| (5) where the total income exceeds Rs.400,000 but does not exceed Rs.700,000. | Rs.45,500 plus 25% of the amount exceeding Rs.400,000. |
| (6) where the total income exceeds Rs.700,000 | Rs.120,500 plus 35% of the amount exceeding Rs.700,000 |
Provided that --
(a) where an assesse's income includes any income from agriculture which is liable to tax
under the laws of any province of Pakistan and such income exceeds Rs. 80,000, the tax
rates applicable in case of such taxpayers would be as under:-
| (1) where the total income does not exceed Rs.150,000 | 7.5 % |
| (2) where the total income exceeds Rs.150,000 but does not exceed Rs.300,000 | Rs.11,250 plus 12.5% of the amount exceeding Rs.150,000; |
| (3) where the total income exceeds Rs. 300,000 but does not exceed Rs. 400,000 | Rs. 30,000 plus 20% of the amount exceeding Rs. 300,000; |
| (4) where the total income exceeds Rs. 400,000 but does not exceed Rs. 700,000 | Rs. 50,000 plus 25% of the amount exceeding Rs. 400,000; |
| (5) where the total income exceeds Rs. 700,000 | Rs. 125,000 plus 35% of the amount exceeding Rs. 700,000. |
(b) The tax payable shall be reduced by an amount equal
to fifty per cent of the tax payable by an assessee of sixty-five years of age or above as
on first day of the relevant income year and earning income upto two hundred thousand
rupees in addition to any other rebate admissible under the law.
(c) notwithstanding anything contained in this Ordinance, no rebate for any allowance
under sections 39, 40, 41, 43, 44, 44A or 46 shall be admissible.
(d) notwithstanding anything contained in this Ordinance, rebate for any allowance under
sections 41AA, 44AA and 44AAA shall be computed at the average rate of tax and
allowed accordingly.
(e) where the total income includes any income from a share of the income profits and
gains of a firm to which paragraph C of Part II applies, such portion of the super tax
payable under the said paragraph as bears to the total amount of such super tax the same
proportion as his share of income, profits and gains of the firm bears to the total income
of the firm shall be added to the income tax payable by such partner under this paragraph,
and, if the sum so arrived at exceeds 20% of the total income of such partner (including
his share of income, profits and gains of the firm before the deduction of super tax), the
amount of income tax payable by him under this paragraph shall be reduced by the amount of
such excess;
(f) for the purposes of assessment, the rates specified in above paragraph will be
applicable to the assessment year commencing on, or after, the1st day of July 2002;
(g) notwithstanding the provisions of clause (f) of proviso to paragraph A1 where the
total income of an assessee comprises or includes any income chargeable under the head
"salary" and such income is more than fifty per cent of his total income, the
rates specified in this paragraph for the purposes of deduction of tax under sub-section
(1) of section 50 shall be effective from the first day of July, 2001
| B. In the case of every local authority. | 30 per cent of the total income. |
| C. In the case of every
company [including a foreign association declared to be a company by the Central Board of
Revenue under clause (16) of section 2], on the total income excluding such part of the
total income as consists of any dividends or bonus or bonus shares to which sub-paragraph
(2) or sub-paragraph (3) of paragraph A of Part II applies and income to which Chapter V
applies: |
30 per cent of such income. |
CC. In the case of every individual, unregistered firm, association of persons, Hindu undivided family and artificial juridical person referred to in clause (32) of section 2, [ ] not being a case to which paragraph B of this Part applies,-
| (a) on the dividend income; | Ten per cent of such income. |
| (b) on the income by way of prize on a prize bond or income representing winnings from a raffle, lottery or cross-word puzzle | Ten per cent of such income. |
| (c) on the income representing profit or interest on an account or deposit maintained with any banking company, or any financial institutions; and | Ten per cent of such income. |
| (d) on the income representing
profit or interest on bonds, certificates, debentures, and instruments of every kind
issued by any banking company, or any company referred to in sub-clause (a) and (b) of
clause (16) of section 2, or any local authority, or any finance society: Provided that this sub-paragraph shall not apply in respect of any assessment year commencing on, or after, the first day of July, 2002 |
Ten per cent of such income. |
(e) on the amount received on encashment of :
| (i) bearer certificates (other than the Foreign Exchange Bearer Certificates) issued on behalf of the Government, banking company, financial institution or any company referred to in sub-clause (a) or sub-clause (b) of clause (16) of section 2, any local authority or any finance society.2% of the amount. | |
| (ii) Foreign Exchange Bearer
Certificates: Provided that this sub-paragraph shall not apply in respect of any assessment year commencing on, or after, the first day of July, 2002 |
1% of the amount. |
CCC (i). In the case of every resident person holding a national tax number and to whom section 80C applies,-
| (a) From the assessment year commencing on or after the first day July, 1999, on the income representing payments on account of execution of contracts other than the income to which clause (b) or (c) or (cc) applies- | |
| (i) Where the value of contract does not exceed thirty million rupees. | Five per cent of such income. |
| (ii) where the value of contract exceeds thirty million rupees. | Six per cent of such income.; |
| (b) on the income representing payments on account of supply of rice, cotton, cotton seed and edible oils; | One and one half percent of such income. |
| (c) on the income representing payments on account of Supplies other than those referred to in sub-paragraph (b); [--] | Three and one half per cent of such income. |
| (cc) on the
income representing payments on account of brokerage or commission: Provided further that this clause shall not apply in respect of any assessment year commencing on, or after, the first day of July, 2002 |
Ten per cent of such income. |
| (d) on the income representing value of goods imported [--] | Five per cent of the value of such goods as determined for the purposes of deduction of advance tax under sub-section (5) of section 50. |
| Provided that for the assessment year commencing on or after the first day 2001, the rate of tax shall be six per cent of the value of goods imported. | |
| (dd) on the
income representing the difference referred to in subsection (5AAA) of section 50: Provided that this clause shall not apply in respect of any assessment year commencing on, or after, the first day of July, 2002 |
Ninety per cent of such income. |
| (e)on the income representing lease money on account of octroi
duties, tolls, fees or other levies: Provided that this clause shall not apply in respect of any assessment year commencing on, or after, the first day of July, 2002 |
Five percent of the sales price. |
| (f) on the income representing commission or discount referred to in sub-section (7H) of section 50. | Ten per cent. |
| (a) From the assessment year commencing on or after the first day of July, 1999, the amount representing payments on account of execution of contracts, other than those mentioned in sub-clause (b), (c) and (d); | |||||||
| (i) Where the value of contract exceeds
thirty million rupees |
Five per cent of such income. | ||||||
(ia)in the case of every resident
person not holding a National Tax Number and to whom section 80C applies, from the
assessment year commencing on, or after, the first day of July, 2001, on the income
representing payments on account of execution of contracts other than the income to which
clause (b) or (c) or (cc) of sub-paragraph (i) apply--
|
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| (ii) Where the value of contract exceeds thirty million rupees. | Six per cent of such income. | ||||||
| (b) execution of turn-key contracts; | eight per cent of amount of payment. | ||||||
| (c) execution of contracts or sub-contracts for designing, supply of plant and equipment and construction of power projects other than hydel power projects) and transmission line projects. | four per cent of the amount of payment. | ||||||
| (d)execution of contracts, or sub-contractors for designing supply of plant and equipment and construction of hydel power project. | five per cent of the amount of payment. | ||||||
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