ACCOUNTING HEADS

Rental Income Tax Rates 2024-2025 in Pakistan | Tax year 2025

Rental Income

It means any amount received or receivable by the owner of land or a building as consideration for the use or occupation of, or the right to use or occupy, the land or building, and includes any forfeited deposit paid under a contract for the sale of land or a building.

Income from Property

The rent received or receivable by a person for a tax year, other than rent exempt from tax under this Ordinance, shall be chargeable to tax in that year under the head Income from Property.

Withholding Tax Rates on Income from Property 2024-2025

Gross Amount of RentTax rates (ATL)Tax rates (NON-ATL)
Where the gross amount of rent does not exceed Rs. 300,000/-NilNIL
Where the gross amount
of rent exceeds
Rs.300,000 but does not
exceed Rs.600,000
5 percent of the
gross amount
exceeding
Rs.300,000.
100% Increase
Where the Gross amount of rent exceeds Rs. 600,000 but does not exceed Rs. 2,000,000Rs.15,000 plus 10
percent of the gross
amount exceeding
Rs.600,000
100% Increase
Where the gross amount of rent exceeds Rs. 2,000,000Rs.155,000 plus 25
percent of the gross
amount exceeding
Rs.2,000,000
100% Increase
Companies15%30%
Rental income tax slab in Pakistan by FBR 2024-25

For more guidance: https://www.fbr.gov.pk/Categ/Income-Tax-Ordinance/326

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