If you are a salaried person then you need income tax calculator to see how much tax you have to pay to FBR (Federal Board of Revenue).
For salaried class
According to Finance Act 2023
Reading the complete article will give you thorough understanding on the tax matters of FBR.
FBR income tax calculator is based on the latest tax rates in Pakistan after the National budget 2022-23.
What you need to do is to give the amount of your annual income in the top box and click on “Calculate my tax” button and you are done.
Unlike GEO income tax calculator we give you the complete formula of tax rates on your salary.
In order to know the complete detail of how to file income tax return you have to go on How to file income tax return FBR from A to Z and read the step-by-step method.
For your convenience you can watch the video.
Income tax rates on salary in Pakistan are based on the following seven tax slabs:
1. Salary under 600,000 has ZERO tax.
2. People with the Salary income from Rs.600,000 to Rs.1200,000 have to pay 2.5% tax annually on the amount exceeding Rs.600,000.
3. People with the Salary income from Rs.1,200,000 to 2,400,000 have to pay 12.5% tax on the amount exceeding 1200,000 along with Rs.15,000 fixed tax.
4. Those who receive the annual salary income from Rs.2,400,000 to Rs.3,600,000 have to pay 22.5% tax on the amount exceeding Rs.2400,000 along with Rs.165,000 fixed tax.
5. Those who receive the annual income of Rs.3,600,000 to Rs.6,000,000 have to pay 27% tax on the amount exceeding 3,600,000 along with Rs. 435,000 as a fixed tax.
6. People receiving the salary of Rs.6,000,000 and above have to pay 35% tax on the amount exceeding Rs.6,000,000 along with Rs.1,095,000 as a fixed annuall tax.
Above is the complete and latest information about the tax rates on salary in Pakistan.
Our FBR income tax calculator is based on the same formula.
The calculator on this page is only for the people living in Pakistan.
It is further specified to be for the salary income.
The business class has to visit tax calculator on business income.
The use of income tax calculator is very easy for all.
You just have to enter your annual income in the box and click on “Calculate my tax” button.
People do not just only want to know the tax amount on their salaries.
They are also desirous to know the method / formula applied on your income.
Therefore our calculator gives you a detailed output of the tax amount you have to pay, quite unlike GEO’s.
For example we tell you:
1. What is the amount of income tax on your salary.
2. In which tax slab does your income fall.
3. What is the formula of tax deduction on your salary.
We have latest calculation formula of 2022-23 and you can verify our tax calculator from the tax manual of the FBR.
Geo income tax calculator gives you the information like; monthly tax, annual tax, Your Net Monthly Salary and annual salary.
After seeing the above information the tax payer is satisfied only of the amount of the tax he / she has to pay.
But the tax payer remains inquisitive about the method how the tax has been calculated on the monthly salary he / she has put in the box.
Our FBR income tax calculator, on the other hand gives the complete formula of tax calculation on your salary income.
Instead of Geo calculator we ask for annual income because monthly salary is rather confusing since it is raised every year with an increment in December.
Therefore if you give your monthly salary in the box it will not calculate the exact amount of the tax, because you have written your monthly salary either with or without increment.
People usually ask the following questions;
You have to calculate the amount of your income tax according to the tax slabs mentioned by FBR. You can see the slabs here.
FBR is the authority in tax matters. You have to calculate your tax according to FBR tax manual. You can see the rates here.
The annual tax on 100K monthly salary Rs.15,000.
The formula of tax calculation on 100K is as follows:
Monthly salary: 100,000
Annual income: 100,000 X 12 = 1,200,000
1,200,000 - 1,200,000 = 0
Fixed annual tax: Rs.15,000
Why to use FBR tax calculator on this page?
Use our calculator because it has the following properties:
1. The latest calculation according to 2022-23 tax rates
2. Detailed calculation (with tax slab and tax deduction formula)
3. Simple to use. Just enter the amount of annual income in the box and click on “Calculate my tax”
4. 100% Authentic: Giving annual income gives authentic calculation instead of monthly income which increased with increment every year.
5. Easy to use: Just put your annual amount and click the button.