As the financial year closed on 30 June, Income Tax Return Filling 2023 in Pakistan has started. Any taxable person whether individual, association of persons (AOP) or company are required to file return of total income with Federal Board of Revenue (FBR). In case of individual and AOP, the deadline is 30 September while this is 31 December in the case of Companies.
In Pakistan, income is taxed under five heads of income as follows:
- Salary income
- Income from business
- Property income
- Capital income
- Income from other sources
Salary Tax Slabs 2023-25 in Pakistan
Salary Tax Rate Table
| Salary Range (per month) | Tax Rate |
|---|---|
| Up to Rs600,000 | Nil |
| Rs601,000 – Rs1,200,000 | 2.5% on the amount over Rs600,000 |
| Rs1,200,001 – Rs2,400,000 | Rs15,000 + 12.5% of the amount over Rs1.2 million |
| Rs2,400,001 – Rs3,600,000 | Rs165,000 + 22.5% of the amount over Rs2.4 million |
| Rs3,600,001 – Rs6,000,000 | Rs435,000 + 27.5% of the amount over Rs3.6 million |
| Above Rs6,000,000 | Rs1,095,000 + 35% of the amount over Rs6 million |
Tax on Property Income
If you are the owner of the property, and you have rent it out. Then, you will be liable to pay tax from 5% to 25% if you are an.individual or AOP. This rate is 30% in case of a Company. These tax rates will be double if you are not on ATL (Avtive tax payer list).
Income from Business
If you drive income from doing any sort of business in Pakistan, then you have to pay tax as well. Here, you will be required to pay tax based on:
Profit before tax normally 29%
Turnover tax normally 1.25%
Accounting profit 17%
Any amount which is higher of the above calculated figures shall be taken as tax liability of the Company.
We are experienced tax consultants in Karachi and can help you in filling your income tax return 2023-24. In case, you need our help, please drop a message on our Whatsapp number 0310-0019175.