The Finance Bill 2021 has proposed amendment to the withholding tax slab rates applicable in case of withholding agents other than company on account of payment of rent of immovable property under Section 155 of the Income Tax Ordinance, 2001. According to the finance bill, where the gross amount of rent not exceeding Rs300,000, the tax rate shall be zero; and where the gross amount of rent is exceeding Rs300,000 but does not exceed Rs600,000, there will be 5 percent tax on the gross amount exceeding Rs300,000. In case, the gross amount of rent exceeds Rs600,000 but does not exceed Rs2,000,000, the tax rate will be Rs15,000 plus 10 percent of the gross amount exceeding Rs600,000. Similarly, if the gross amount of rent exceeds Rs2,000,000, the rate will be Rs155,000 plus 25 percent of the gross amount exceeding Rs2,000,000.