Tax Rate for AOP’s and Business Individuals

Business individuals , partnership firms and any group of persons (Association of Persons) are required to true and fair estimation of profit , tax is charged on the profits  business organizations.

All sole proprietors and AoP’s  fall with the category  Business Individuals and AOP’s, hence taxation relating to Business Individuals and AOP’s are applicable to all of them.

Tax Rates for Business Individuals for Tax Year 2019

0-400,000 0%
400,001-800,000 Rs.1,000
*800,001-1,200,000 Rs.2,000
1,200,001-2,400,000 5% of the amount above 1,200,000
2,400,001-3,000,000 60,000 + 15% of the amount above 2,400,000
3,000,001-4,000,000 150,000 + 20% of the amount above 3,000,000
4,000,001-5,000,000 350,000 + 25% of the amount above 4,000,000
Above 5,000,000 600,000 + 29% of the amount above 5,000,000
*where taxable income exceeds Rs. Eight hundred thousand, the min tax payable shall be Rs. 2000.

Tax Rates for AOP’s for Tax Year 2019

0-400,000 0%
400,000-1,200,000 5% of the amount above 400,000
1,200,000-2,400,000 40,000 + 10% of the amount above 1,200,000
2,400,000-3,600,000 160,000 + 15% of the amount above 2,400,000
3,600,000-4,800,000 340,000 + 20% of the amount above 3,600,000
4,800,000-6,000,000 580,000 + 25% of the amount above 4,800,000
Above 6,000,000 880,000 + 30% of the amount above 6,000,000

Tax Rate for AOP’s and Business Individuals

Tax Rates for Business Individuals and AoP’s are as follows (2018)