1. What is FBR Income Tax?

The Federal Board of Revenue (FBR) of Pakistan imposes progressive income tax rates on individuals based on their annual income. The tax brackets are updated periodically, with 2024-2025 rates being the current applicable rates.

2. How Does the Calculator Work?

The calculator uses the FBR tax brackets for 2024-2025:

Where:

• 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 + 20% of amount exceeding 2,400,000
• PKR 3,600,001 - 6,000,000 — PKR 405,000 + 25% of amount exceeding 3,600,000
• PKR 6,000,001 - 12,000,000 — PKR 1,005,000 + 32.5% of amount exceeding 6,000,000
• Above PKR 12,000,000 — PKR 2,955,000 + 35% of amount exceeding 12,000,000

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, ensures compliance with FBR regulations, and avoids penalties for underpayment.

4. Using the Calculator

Tips: Enter your annual income in PKR and select the tax year (2024 or 2025). The calculator will compute your tax liability based on FBR brackets.

5. Frequently Asked Questions (FAQ)

Q1: Are there any tax exemptions?
A: Yes, certain incomes and individuals may qualify for exemptions. Consult FBR guidelines for details.

Q2: How often are tax brackets updated?
A: Typically annually, as part of the federal budget announcement.

Q3: Is this calculator for salaried individuals only?
A: No, it calculates tax for all individuals based on progressive rates.

Q4: What about tax credits?
A: This calculator shows gross tax liability before any applicable credits.

Q5: When are taxes due in Pakistan?
A: Typically by September 30 for the preceding tax year, but check FBR for exact dates.