Salary Income Tax Calculator Pakistan 2021-2022

How to calculate income tax on salary?

As per the Finance Act, 2013 passed and approved by the Government of Pakistan, This information applies income tax rates in Pakistan on taxable income of salaried persons and salaried class. A salaried person’s class slabs are applicable where salary income exceeds 50% of the total taxable income.

Income Tax Slabs 2021-2022

As per Federal Budget 2021-2022 presented by the Government of Pakistan in the national assembly, the following slabs and income tax rates will be applicable for salaried persons for the year 2021-2022:

1. Where the taxable salary income does not exceed Rs. 600,000 the rate of income tax is 0%.
2. Where the taxable salary income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 the rate of income tax is 5% of the amount exceeding Rs. 600,000.
3. Where the taxable salary income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000 the rate of income tax is Rs. 30,000 + 10% of the amount exceeding Rs. 1,200,000.
4. Where the taxable salary income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000 the rate of income tax is Rs. 90,000 + 15% of the amount exceeding Rs. 1,800,000.
5. Where the taxable salary income exceeds Rs. 2,500,000 but does not exceed Rs. 3,500,000 the rate of income tax is Rs. 195,000 + 17.5% of the amount exceeding Rs. 2,500,000.
6. Where the taxable salary income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000 the rate of income tax is Rs. 370,000 + 20% of the amount exceeding Rs. 3,500,000.
7. Where the taxable salary income exceeds Rs. 5,000,000 but does not exceed Rs. 8,000,000 the rate of income tax is Rs. 670,000 + 22.5% of the amount exceeding Rs. 5,000,000.
8. Where the taxable salary income exceeds Rs. 8,000,000 but does not exceed Rs. 12,000,000 the rate of income tax is Rs. 1,345,000 + 25% of the amount exceeding Rs. 8,000,000.
9. Where the taxable salary income exceeds Rs. 12,000,000 but does not exceed Rs. 30,000,000 the rate of income tax is Rs. 2,345,000 + 27.5% of the amount exceeding Rs. 12,000,000.
10. Where the taxable salary income exceeds Rs. 30,000,000 but does not exceed Rs. 50,000,000 the rate of income tax is Rs. 7,295,000 + 30% of the amount exceeding Rs. 30,000,000.
11. Where the taxable salary income exceeds Rs. 50,000,000 but does not exceed Rs. 75,000,000 the rate of income tax is Rs. 13,295,000 + 32.5% of the amount exceeding Rs. 50,000,000.
12. Where the taxable salary income exceeds Rs. 75,000,000 the rate of income tax is Rs. 21,420,000 + 35% of the amount exceeding Rs. 75,000,000.