Jalebi

Keep up to date with the latest news
Income Tax Calculator Pakistan

Income Tax Calculator Pakistan

Income tax is the tax you pay on your income. The income tax is paid by the workers, that is to say, the employees, the self-employed and the unincorporated enterprises. Income tax is one of the important sources by which a government finances its activities. Personal income tax revenues represent only 1.1% of GDP in Pakistan (11% of total tax revenue) and only 2% of the working-age population is registered as a taxpayer. In accordance with the 2018-2019 Finance Law approved by the Government of Pakistan, this Web-based tax calculator applies the income tax rates in Pakistan to the taxable income of employees and the class of employees. Slabs in the category of employees are applicable when the wage income exceeds 50% of the total taxable income.

Exemptions:

A senior citizen of Pakistan, a taxpayer aged 60 or over on the first day of the tax year concerned, receives a 50% reduction in the amount of his tax liability if his taxable income during that year tax is Rs. 1,000,000 / - or less. The income tax exemptions announced last year, which had generously exempted from taxation less than 100,000 rupees per month (1.2 million rupees per year), were removed.

Reintroducing taxes:

The PTI government has proposed reintroducing taxes for anyone earning more than 50,000 rupees a month (600,000 rupees per year). The government has also introduced 11 tax boards with a progressive tax rate of between 5 and 35 percent of income. Those who earn Rs 2.4 to 4.8 million per year pay taxes of Rs 60 000. Those with a salary of more than Rs 4.8 million pay in addition to 15 percenta of the salary fixed tax of Rs 300,000.

The Last Government:

In the tax concessions announced in the financial year 2018/19, the PML-N government had earmarked monthly allowances of between Rs 5,000-35,000 in its most recent budget, with Rs.5,000-25,000 less deducted from their salaries. Tax experts said it was a great relief to the salaried class and said that actually Rs 5,000 was added to the salaries of those who received Rs 60,000 monthly salaries. The last government had defined 12 categories (plates) for the salary grade and a fixed tax rate of 2% to 30%. In the last category, an employee who received more than Rs 70 lakh a year had to pay taxes of 30% and a fixed amount of Rs 1422,000. These employees with an annual income of 400,000 rupees were exempt from tax. Those who received Rs 400,000 to 800,000 and Rs 800,000 to R 1200,000 were charged a fictitious tax. Therefore, those who receive monthly salaries in the range of Rs. 40,000 to Rs.100,000 receive financial benefits of Rs. 5,000 to 9,000.

Income Tax Calculator Pakistan

Join our newsletter today!