The National Board of Revenue (NBR) has reduced the tax rate on income derived from provident and other pension funds from 27.5 per cent to 15 per cent for FY2023-24.
NBR issued a Statutory Regulatory Order (SRO) in this regard on December 6. It was published on Thursday. The new tax rate came into effect on Friday.
According to the order, the tax rate on income from provident fund, gratuity fund, superannuation fund, and pension fund has now been fixed at 15 per cent.
The budget for FY24 had imposed a 27.5 per cent tax on income generated by these funds, leading to disgruntlement among employees nationwide.
