Tax Slabs for Salaried Income
Taxes trigger fear in people generally. It is pretty common to face the taxes and get into trouble sometimes as well. Along with other taxes , tax on salary in Pakistan is one of the common taxes. Every employed person has to pay the tax and go through the cycle.
Being a salaried person you need to know about the salary tax slabs 2019-20 Pakistan. Knowing all of the recent income tax slabs is beneficial for you to calculate your accurate salary after tax cutting. Currently, you should focus on the tax slabs 2020-21 Pakistan. It helps you in keeping the track of how much tax you are paying.
How to calculate income tax on salary?
As per the Finance Act 2013 approved by Government of Pakistan, this web based tax calculator applies income tax rates in Pakistan on taxable income of salaried persons and salaried class. A salaried person class slabs are applicable where salary income exceeds more than 50% of the total taxable income.
To keep the system justified, there are income tax slabs that define the taxable income in Pakistan. Using these FBR income tax slabs one can get to know about the possible tax on salary.
Do you pay income tax in Pakistan?
Knowingly or unknowingly, everyone pays income tax in Pakistan. The income tax rate in Pakistan 2020 defines the limits and salary tax slabs. Considering the income tax slab Pakistan, companies deduct tax on salaries while paying them. If you have a look at the paycheck, you will find out some deductions there. These are not the internal deductions everytime. You have paid the income tax on your salary and that encourages you to file for tax returns by the end of fiscal year.
Can I avoid income tax slab Pakistan?
If you are an employed person and eating a good amount that brings you in the tax slabs of Pakistan, then it is not possible to avoid the tax. You will have to pay it in any case. But, there is a solution to filing the tax returns. If you fall out of the tax slab by the end of the fiscal year, you will get tax returns. Moreover, you will enjoy other benefits of tax reduction, subsidies and much more on spending, bank withdrawals, buying or selling assets and much more.
What are the income tax slabs Pakistan?
It is good to know about the FBR income tax slabs while you are earning and eventually paying income tax. Knowing the slabs helps you to avoid the over deduction of tax from your salary account.
Below we are providing you the tax slabs that can help you know where you land.
Where the salary income individual exceeds seventy-five percent of his taxable income, the rates of tax applied will be as follows:
| S. No | Taxable Income | Rate of Tax |
| (1) | (2) | (3) |
| 1. | Where the taxable income does not exceed Rs. 600,000 | 0% |
| 2. | Where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 | 5% of the amount exceeding Rs. 600,000 |
| 3. | Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000 | Rs. 30,000 plus 10% of the amount exceeding Rs. 1,200,000 |
| 4. | Where taxable income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000 | Rs. 90,000 plus 15% of the amount exceeding Rs. 1,800,000 |
| 5. | Where taxable income exceeds Rs. 2,500,000 but does not exceed Rs. 3,500,000 | Rs. 195,000 plus 17.5% of the amount exceeding Rs. 2,500,000 |
| 6. | Where the taxable income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000 | Rs. 370,000 plus 20% of the amount exceeding Rs. 3,500,000 |
| 7. | Where the taxable income exceeds Rs. 5,000,000 but does not exceed Rs. 8,000,000 | Rs. 670,000 plus 22.5% of the amount exceeding Rs. 5,000,000 |
| 8. | Where the taxable income exceeds Rs. 8,000,000 but does not exceed Rs. 12,000,000 | Rs. 1,345,000 plus 25% of the amount exceeding Rs. 8,000,000 |
| 9. | Where taxable income exceeds Rs. 12,000,000 but does not exceed Rs.30,000,000 | Rs. 2,345,000 plus 27.5% of the amount exceeding Rs. 12,000,000 |
| 10. | Where the taxable income exceeds Rs. 30,000,000 but does not exceed Rs.50,000,000 | Rs. 7,295,000 plus 30% of the amount exceeding Rs. 30,000,000 |
| 11. | Where taxable income exceeds Rs. 50,000,000 but does not exceed Rs.75,000,000 | Rs.13,295,000 plus 32.5% of the amount exceeding Rs. 50,000,000 |
| 12. | Where taxable income exceeds Rs.75,000,000 | Rs. 21,420,000 plus 35% of the amount exceeding Rs. 75,000,000 |
Tax Slabs for Business Income
The rates of tax imposed on the income of every individual and association of persons, except a salaried individual, are as follows:
| S. No | Taxable Income | Rate of Tax |
| (1) | (2) | (3) |
| 1. | Where the taxable income does not exceed Rs. 400,000 | 0% |
| 2. | Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 600,000 | 5% of the amount exceeding Rs. 400,000 |
| 3. | Where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 | Rs. 10,000 plus 10% of the amount exceeding Rs. 600,000 |
| 4. | Where the taxable income exceeds Rs. 1,200,000 but does not Rs. 2,400,000 | Rs. 70,000 plus 15% of the amount exceeding Rs. 1,200,000 |
| 5 | Where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000 | Rs. 250,000 plus 20% of the amount exceeding Rs. 2,400,000 |
| 6 | Where taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000 | Rs. 370,000 plus 25% of the amount exceeding Rs. 3,000,000 |
| 7. | Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 6,000,000 | Rs. 620,000 plus 30% of the amount exceeding Rs. 4,000,000 |
| 8. | Where the taxable income exceeds Rs. 6,000,000 | Rs. 1,220,000 plus 35% of the amount exceeding Rs. 6,000,000 |
