Advocate Ch Shahid Bhalli

How To Calculate Taxable Income Under Section 149 Income Tax in Pakistan

As per Lawkidunya, Here’s a simple income tax calculator for Pakistan based on Section 149 of the Income Tax Ordinance, 2001:

Tax Calculator

Taxable Income
Enter your taxable income: PKR
Tax Rates
| Taxable Income | Tax Rate |
| Up to PKR 600,000 | 0% |
| PKR 600,001 – PKR 1,200,000 | 5% |
| PKR 1,200,001 – PKR 2,200,000 | 15% |
| PKR 2,200,001 – PKR 3,200,000 | 25% |
| PKR 3,200,001 – PKR 4,100,000 | 30% |
| PKR 4,100,001 and above | 35% |

Calculations

1. Enter your taxable income.
2. Determine your tax bracket based on the tax rates above.
3. Calculate your tax liability using the tax rate for your bracket.

Example of Calculations

Example 1: Taxable Income PKR 800,000
Taxable income: PKR 800,000
Tax bracket: PKR 600,001 – PKR 1,200,000
Tax rate: 5%
Tax liability: PKR 10,000 (5% of PKR 200,000, which is the amount exceeding PKR 600,000)

Example 2: Taxable Income PKR 2,500,000
Taxable income: PKR 2,500,000
Tax bracket: PKR 1,200,001 – PKR 2,200,000
Tax rate: 15%
Tax liability: PKR 210,000 (PKR 30,000 + 15% of PKR 1,200,000, which is the amount exceeding PKR 1,200,000)

Please note that this is a simplified calculator and does not take into account other factors that may affect your tax liability, such as:

– Additional taxes or surcharges
– Tax exemptions or deductions
– Tax credits
– Other sources of income
It’s essential to consult a tax professional or the Federal Board of Revenue (FBR) website for accurate and personalized tax calculations.

Picture of Ch Muhammad Shahid Bhalli

Ch Muhammad Shahid Bhalli

I am a more than 9-year experienced professional lawyer focused on UK Tax laws, income tax and VAT in UK. I simplify complex legal topics to help
individuals and businesses stay informed, compliant, and empowered. My mission is to share practical, trustworthy legal insights in plain English.

Related Posts on Lawkidunya