What is Super Tax under section 4C?
4C. Super tax on high earning persons: A super tax shall be imposed for tax year 2022 and onwards at the rates specified in Division IIB of Part I of the First Schedule, on income of every person. Provided that this section shall not apply to a banking company for tax year 2022.
Which income is Taxable U/S 4C?
For the purposes of this section, “income” shall be the sum of the following:
(i) profit on debt, dividend, capital gains, brokerage and commission;
(ii) taxable income (other than brought forward depreciation and brought forward business losses) under section 9 of the Ordinance, excluding amounts specified in clause (i);
(iii) imputable income as defined in clause (28A) of section 2 excluding amounts specified in clause (i); and
(iv) income computed, other than brought forward depreciation, brought forward amortization and brought forward business losses under Fourth, Fifth 1 [, Seventh and Eighth] Schedules.
Super Tax Rates (4C)
| Income under section 4C | For tax year 2022 | For tax year 2023 and onwards |
|---|---|---|
| Where income does not exceed Rs. 150 million | 0% of the income | 0% of the income |
| Where income exceeds Rs. 150 million but does not exceed Rs. 200 million | 1% of the income | 1% of the income |
| Where income exceeds Rs. 200 million but does not exceed Rs. 250 million | 2% of the income | 2% of the income |
| Where income exceeds Rs. 250 million but does not exceed Rs. 300 million | 3% of the income | 3% of the income |
| Where income exceeds Rs. 300 million but does not exceed Rs. 350 million | 4% of the income | 4% of the income |
| Where income exceeds Rs. 350 million but does not exceed Rs. 400 million | 4% of the income | 6% of the income |
| Where income exceeds Rs. 400 million but does not exceed Rs. 500 million | 4% of the income | 8% of the income |
| Where income exceeds Rs. 500 million | 4% of the income | 10% of the income: |
For more guidance: https://www.fbr.gov.pk/Categ/Income-Tax-Ordinance/326
