1. What is Income Tax?

Income tax is a direct tax imposed by the government on the income of individuals and businesses. In Pakistan, the Federal Board of Revenue (FBR) administers income tax collection based on progressive tax slabs.

2. How Does the Calculator Work?

The calculator uses Pakistan's progressive tax rates for Fiscal Year 2024-25:

Where:

• Income — Annual taxable income in PKR
• Rate — Progressive tax rate based on income slabs

3. Pakistan Tax Slabs FY 24-25

Tax Slabs for Salaried Individuals:

• Up to PKR 600,000: 0%
• PKR 600,001 - 1,200,000: 2.5% of amount exceeding PKR 600,000
• PKR 1,200,001 - 2,400,000: PKR 15,000 + 12.5% of amount exceeding PKR 1,200,000
• PKR 2,400,001 - 3,600,000: PKR 165,000 + 20% of amount exceeding PKR 2,400,000
• PKR 3,600,001 - 6,000,000: PKR 405,000 + 25% of amount exceeding PKR 3,600,000
• PKR 6,000,001 - 12,000,000: PKR 1,005,000 + 32.5% of amount exceeding PKR 6,000,000
• Above PKR 12,000,000: PKR 2,955,000 + 35% of amount exceeding PKR 12,000,000

4. Using the Calculator

Tips: Enter your annual income in PKR and select the fiscal year (24-25). The calculator will automatically apply the appropriate tax rates based on Pakistan's tax slabs.

5. Frequently Asked Questions (FAQ)

Q1: Is the tax calculator accurate for all income types?
A: This calculator uses standard salaried individual rates. Business income and other types may have different rates.

Q2: Are there any tax credits or deductions?
A: Yes, Pakistan offers various tax credits and deductions which are not accounted for in this basic calculator.

Q3: When is the tax filing deadline?
A: For FY 24-25, the deadline is typically September 30, 2025 for salaried individuals.

Q4: How often should I calculate my tax liability?
A: It's good practice to calculate periodically, especially after any significant income changes.

Q5: Where can I get official tax information?
A: Always refer to the Federal Board of Revenue (FBR) website for official tax information.