1. What is FBR Tax Calculation?

The FBR (Federal Board of Revenue) tax calculation estimates income tax based on progressive tax slabs in Pakistan. It applies different rates to different portions of taxable income.

2. How Does the Calculator Work?

The calculator uses the FBR tax slabs:

Current FBR Tax Slabs (2023-2024):

• Up to PKR 600,000: 0%
• PKR 600,001 - 1,200,000: 2.5% of amount exceeding 600,000
• PKR 1,200,001 - 2,400,000: PKR 15,000 + 12.5% of amount exceeding 1,200,000
• PKR 2,400,001 - 3,600,000: PKR 165,000 + 17.5% of amount exceeding 2,400,000
• PKR 3,600,001 - 6,000,000: PKR 285,000 + 22.5% of amount exceeding 3,600,000
• PKR 6,000,001 - 12,000,000: PKR 465,000 + 27.5% of amount exceeding 6,000,000
• Above PKR 12,000,000: PKR 765,000 + 35% of amount exceeding 12,000,000

3. Importance of Tax Calculation

Details: Accurate tax calculation is crucial for financial planning, compliance with Pakistani tax laws, and avoiding penalties from FBR.

4. Using the Calculator

Tips: Enter your annual taxable income in PKR. The calculator will automatically apply the appropriate tax slab rates and deductions.

5. Frequently Asked Questions (FAQ)

Q1: What is considered taxable income?
A: Taxable income includes salary, business profits, rental income, capital gains, and other sources after allowable deductions.

Q2: Are there any tax exemptions?
A: Yes, certain incomes like agricultural income (in some cases), Zakat, and some investments may be exempt.

Q3: When is tax filing due in Pakistan?
A: Typically by September 30th for individuals, but check FBR announcements for current year deadlines.

Q4: Can I claim tax credits?
A: Yes, for certain expenses like education, health insurance, and charitable donations as per FBR rules.

Q5: Is this calculator official?
A: This is for estimation only. Always consult FBR or a tax professional for official tax calculations.