Income Tax Calculator

Income Tax Calculators

Are you in search of an Income tax calculator?

Here is the ultimate income tax calculator that works seamlessly to calculate your monthly, yearly income tax and the amount of your take-home salary in terms of month wise and year wise.

This income tax calculator works perfectly while calculating your income and the amount payable in terms of taxes. All you have to do is enter the amount of salary you are drawing out of your workplace.

Working on your calculator:

To calculate your monthly and yearly tax, you need to perform a few steps that will allow you to have the real taxable income and net tax payable in real-time. In addition, all you have to do is simply punch the figures into the monthly income section.

The rest of the procedure is done by the calculator at the back end, and within no time, your required information in terms of amount will appear in front of you. This will be the net taxable amount that you are going to pay to the tax authorities.

This net tax payable will appear in front of you with the monthly and yearly bifurcation. This calculator performs working on the guidelines set by the Federal Board of Revenue tax slabs. You can easily find these tax slabs are on the Finance act of 2019. These income tax slabs grow with the growth in your income.

This calculator has a simple step to perform. The steps you need to perform in terms of your calculator to calculate the exact amount are as follows.

Monthly Income:

This is the main section where you have to enter the amount of salary you are earning on a monthly basis.

Monthly Tax:

This is the amount that will appear in front of you when you enter your monthly salary.

Salary After Tax:

In this section, that amount will appear in front of you that you will have after the deduction of tax from your salary.

Yearly Income:

In the section, you will see the amount of total income you will earn at the year-end after the deduction of your yearly tax.

Yearly Tax:

The amount appearing in this section signifies the amount of tax that you are going to pay at the year-end as your income tax payable for the financial year.

Yearly Income After Tax:

This is the final amount of your income where all your yearly income will arrive after the yearly income tax deduction you have to pay to the Federal Board of Revenue.

Income Tax Slabs

According to the Federal Budget for the financial year 2020-2021 presented by the Government of Pakistan. There are 12 tax slabs for the salaried individuals that are as follows.

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 2.5% of the amount exceeding Rs. 600,000
3. Where the taxable salary income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000 the rate of income tax is Rs. 15,000+12.5% of the amount exceeding Rs. 1,200,000.
4. Where the taxable salary income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000 the rate of income tax is Rs. 165,000 + 20% of the amount exceeding Rs. 2,400,000.
5. Where the taxable salary income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000 the rate of income tax is Rs. 405,000 + 25% of the amount exceeding Rs. 3,600,000.
6. Where the taxable salary income exceeds Rs. 6,000,000 but does not exceed Rs. 12,000,000 the rate of income tax is Rs. 1,005,000 + 32.5% of the amount exceeding Rs. 6,000,000.
7. Where the taxable salary income exceeds Rs. 12,000,000 the rate of income tax is Rs. 2,955,000 + 35% of the amount exceeding Rs. 12,000,000.

Lowest taxpayer bracket:

Suppose you have a salary income of upto 50,000 PKR or less. You don’t have to pay a single rupee to the tax authorities. Because you fall under the lowest taxpayer bracket and you are exempted from the taxable salary income.

Highest taxpayer bracket:

If you have a salary income that exceeds 75 million PKR per annum, you fall under the final tax regime and you have to pay a straight 35% tax on the salary income that you are deriving.

Heads Of Income According to Income Tax Ordinance, 2001:

The heads of income that falls under the Income Tax Ordinance, 2001. There are five heads of income that comprise the income that an individual can derive from the Islamic Republic of Pakistan.

1. Salary
2. Income from property
3. Income from business
4. Capital gains
5. Income from Other Sources

Disclaimer:

The calculator mentioned above is a tool that works perfectly for calculating the ry income of an individual residing in Pakistan. The calculator’s working is according to the slabs set by the Federal Board of Revenue in the Income Tax Ordinance, 2001.

If you further require any information please visit the site www.fbr.com for further assistance.