However, the exact amount of tax would be calculated on the basis of the slab where the income of a person falls under the schedule given in the Income Tax Ordinance 2001. The income tax surcharge would not be charged on the income, but calculated on the payable tax.
The salaried taxpayers falling within the highest brackets of taxable income would be liable to pay a larger amount in the form of income tax surcharge as compared to those drawing less income. The following table gives the monthly tax payable before and after surcharge given different income levels. It is important to mention that as per salaried slabs given in the First Schedule Part-I of the Income Tax Ordinance:
1. Where the taxable income does not exceed Rs 300,000, the rate of tax is zero percent.
2. Where the taxable income exceeds Rs 300,000 but does not exceed Rs 350,000, rate of tax is 0.75%. The surcharge would be calculated on the basis of 0.75 percent.
3. Where the taxable income exceeds Rs 350,000 but does not exceed Rs 400,000, rate of tax is 1.50 percent. The surcharge would be calculated on the basis of tax worked out as per prescribed rates in the slab.
4. Where the taxable income exceeds Rs 400,000 but does not exceed Rs 450,000, rate of tax is 2.50 percent. The surcharge would be calculated on the tax rate of 2.50 percent. The surcharge would be worked out on the basis of tax calculated as per prescribed rate in the slab.
5. Where the taxable income exceeds Rs 450,000 but does not exceed Rs 550,000, tax rate would be 3.50 percent. The surcharge would be worked out on the basis of tax calculated as per prescribed rates in the slab.
6. Where the taxable income exceeds Rs 550,000 but does not exceed Rs 650,000, tax rate would be 4.50 percent. The surcharge would be calculated on the basis of tax worked out as per prescribed rates in the slab.
7. Where the taxable income exceeds Rs 650,000 but does not exceed Rs 750,000, the rate of tax would be 6 percent. The surcharge would be calculated on the basis of tax worked out as per prescribed rates in the slab.
8. Where the taxable income exceeds Rs 750,000 but does not exceed Rs 900,000, tax rate would be 7.50 percent. The surcharge would be worked out on the basis of tax calculated as per prescribed rates in the slab.
9. Where the taxable income exceeds Rs 900,000 but does not exceed Rs 1,050,000, the rate of tax would be 9 percent. The surcharge would be worked out on the basis of tax calculated as per prescribed rates in the slab.
10. Where the taxable income exceeds Rs 1,050,000 but does not exceed Rs 1,200,000, rate of tax would be 10 percent. The surcharge would be calculated taking into account tax as per prescribed rates in the slab.
11. Where the taxable income exceeds Rs 1,200,000 but does not exceed Rs 1,450,000, rate of tax would be 11 percent. The surcharge would be calculated taking into account tax as per prescribed rates in the slab.
12. Where the taxable income exceeds Rs 1,450,000 but does not exceed Rs 1,700,000, tax rate would be 12.50 percent. The surcharge would be calculated taking into account tax as per prescribed rates in the slab.
13. Where the taxable income exceeds Rs 1,700,000 but does not exceed Rs 1,950,000, tax rate would be 14 percent. The surcharge would be worked out on the basis of tax calculated as per prescribed rates in the slab.
14. Where the taxable income exceeds Rs 1,950,000 but does not exceed Rs 2,250,000, the rate of tax would be 15 percent. The surcharge would be worked out on the basis of tax calculated as per prescribed rates in the slab.
15. Where the taxable income exceeds Rs 2,250,000 but does not exceed Rs 2,850,000, rate of tax is 16 percent.
16. Where the taxable income exceeds Rs 2,850,000 but does not exceed Rs 3,550,000, tax rate is 17.50 percent.
17. Where the taxable income exceeds Rs 3,550,000 but does not exceed Rs 4,550,000, tax rate would be 18.5 percent.
18. Where the taxable income exceeds Rs 4,550,000, the rate of tax would be 20 percent. The surcharge would be worked out on the basis of tax calculated as per prescribed rate in the slab.
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Monthly income (Rs) Income tax Income tax Surcharge
payable payable
before 15% after 15%
surcharge surcharge
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30,000 450 518 68
35,000 875 1006 131
40,000 1,400 1,610 210
50,000 2,250 2,588 338
75,000 5,625 6,469 844
100,000 10,000 11,500 1,500
150,000 21,000 24,150 3,150
200,000 32,000 36,800 4,800
300,000 55,500 63,325 8,325
400,000 80,000 92,000 12,000
500,000 100,000 115,000 15,000
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