Income Tax:
Income tax is a tax paid to government from your Income. In Pakistan taxable income on which tax is payable is on the income which is above 600,000 annually. For a salaried person income tax will be deducted by the employer monthly. Your Epmloyer/company will provide you the tax deduction certificate at the end of the year.
Income Tax Return Filing:
In case of salaried person Tax will be deducted by employer but employee as an individual has to file his/her own Income tax return at the year end
Example:
If your salary is Rs. 100,000 per month and as per taxation rules your employer is deducting Rs. 2500 as income tax from your salary so at the year end you will get a tax deduction certificate Rs. 2500 x 12 = Rs. 30,000
Since your employer has already deducted the tax from your salary and has provided you the tax certificate then in Income Tax return filing this certificate amount will be adjusted with your total tax and the return will be filed. Usually for salaried person there is no extra tax to be paid at year end (depends if there is no credit transactions in your salaried bank account other than your salary) only the tax certificate will be adjusted
Documents required to file the tax return are:
1) NIC Copy
2) Tax deduction certificate( employer/company will provide)
3) 1 year bank statement of salaried Account from 1st july – 30th june
4) Tax deduction certificate from mobile companies
5) value of ownership property (if property is under your name)
6) vehicle value only those vehicles which are under your name
You can hire a professional tax lawyer to file your income tax return by clicking on Apply Now
Slabs of income tax:
As per Federal Budget 2019-2020 presented by Government of Pakistan, following slabs and income tax rates will be applicable for salaried persons for the year 2019-2020:
> Where the taxable salary income does not exceed Rs. 600,000 the rate of income tax is 0%.
> 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.
> 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.
> 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.
> 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.
> 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.
> 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.
> 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.
> 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.
> 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.
> 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.
> 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.
TAX CALCULATOR:
Calculate tax on your income
