*ISLAMABAD – The federal government on Thursday has approved amendments inthe Income Tax Ordinance of Finance Act 2018, in a federal cabinet meetinglead by Prime Minister Imran Khan.*
According to the amendments in the act, for an annual salary not exceedingRs 0.4 million, no tax will be applied, while for those with annual salarybetween Rs 400,000-Rs 800,000, will have to pay Rs 1,000 in tax.
Meanwhile, for those with annual earning in Rs 800,000-Rs 1,20,0000 annualsalary, will have to pay Rs 2,000 in tax. Whereas, for those earning Rs1.2million to 2.4 million rupees, five per cent additional tax will beapplied, as per the new amendment.
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For those earning Rs 2.4 million to 4.8 million rupees annually will betaxed Rs 60,000 in addition to 10pc additional tax. Furthermore, thoseearning more than Rs 4.8 million a year, a fixed tax of Rs 300,000 ispayable in addition to 15pc of the salary amount above this limit.
