INCOME TAX RATES HOUSE / 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”. The rate of tax to be paid under section 15, in the case of individual and association of persons. 

Section 155: Income from Property

Any payment made on account of rent of immovable property

(A) In case of individual or AOP (Association of Persons)

1. Where the gross amount of rent does not exceed Rs. 200,000/-: the tax shall be zero

2. Where the gross amount of rent exceeds Rs. 200,000/- but does not exceed Rs. 600,000/-: 5 percent of the gross amount exceeding Rs. 200,000/-

3. Where the gross amount of rent exceeds Rs. 600,000/- but does not exceed Rs. 1,000,000/-: Rs. 20,000/- plus 10 percent of the gross amount exceeding Rs. 600,000/-

4. Where the gross amount of rent exceeds Rs. 1,000,000/- but does not exceed Rs. 2,000,000: Rs. 60,000/- plus 15 percent of the gross amount exceeding Rs. 1,000,000/-

5. Where the gross amount of rent exceeds Rs. 2,000,000/- but does not exceed Rs. 4,000,000/-: Rs. 210,000/- plus 20 percent of the gross amount exceeding Rs. 2,000,000/-

6. Where the gross amount of rent exceeds Rs. 4,000,000/- but does not exceeds Rs. 6,000,000/-: Rs. 610,000/- plus 25 per cent of the gross amount exceeding Rs. 4,000,000/-

7. Where the gross amount of rent exceeds Rs.6,000,000/- but does not exceeds Rs. 8,000,000/-: Rs.1,110,000/- plus 30 per cent of the gross amount exceeding Rs. 6,000,000/-

8. Where the gross amount of rent exceeds Rs.8,000,000/- Rs. 1,710,000/- plus 35 percent of the gross amount exceeding Rs. 8,000,000/-

B) in case of company: 15 percent