1. What is Assessment Year 2022-23 Tax?

The Assessment Year 2022-23 tax refers to the income tax rates and slabs applicable for the financial year 2021-22 in Pakistan. The calculator helps estimate your tax liability based on these rates.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Taxable \) — Your taxable income in PKR
• \( Rate \) — Progressive tax rate based on income slabs

Explanation: The calculator applies different tax rates to different portions of your income based on Pakistan's progressive tax system.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, ensures compliance with tax laws, and avoids penalties for underpayment.

4. Using the Calculator

Tips: Enter your taxable income in PKR and select your filing status (Individual or AOP). The calculator will compute your tax liability based on AY 2022-23 rates.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between Individual and AOP?
A: Individual refers to single taxpayers while AOP (Association of Persons) has different tax slabs and rates.

Q2: Are there any tax exemptions?
A: Yes, the first 600,000 PKR for individuals and 400,000 PKR for AOPs is tax-free for AY 2022-23.

Q3: How often are tax rates updated?
A: Tax rates are typically revised annually in the federal budget presented each June.

Q4: What if I have multiple income sources?
A: You should combine all taxable income sources before using this calculator.

Q5: Does this include provincial taxes?
A: No, this calculator only computes federal income tax liability.