Pakistan Income Tax Plates 2022-23

Income Tax Plates 2022-23 Pakistan | Payroll tax calculator

Here we are going to discuss everything you need to know about calculating income tax according to the last Payroll Tax Bracket Rates 2022-23 in Pakistan. They are different Income tax plates for the year 2022-2023 in Pakistan on salary income.

Wage income is subject to the following divisions according to general usages and according to the Income Tax Ordinance 2001. Looked:

  • Base salary
  • Housing allowance (HRA)
  • Transportation allowance
  • Medical and other allowances

BASE SALARY

This is a fixed amount of money that you can receive without any additional payments or deductions. It does not include any type of allowances, commissions, bonuses or overtime pay.

HOUSE RENT ALLOWANCE (HRA)

The Housing allowance (HRA) consists of a certain percentage of your gross salary. It is fixed according to the amount of your net salary. Usually, a housing allowance is around 40-50% of your base salary.

TRANSPORT ALLOWANCE

About 10-15% of salaries are allocated to transportation allowances. For example, if you earn 50,000 PKR per month, a transportation allowance of around 5,000 to 7,000 PKR will be included in this amount.

MEDICAL AND OTHER BENEFITS

Many employers offer the medical allowance amount separately. The same applies to other types of allowances such as entertainment allowances, travel allowances and fuel allowances.

Medical Benefit Exemption Limit

The medical allowance of up to 10% of base salary is tax exempt and is available as deductions from wage income to calculate taxable income.

According to the revised income tax brackets for the fiscal year 2022-23, the income tax rates have been revised and have been increased compared to the previous tax year (i.e. say tax year 2022). Now let’s learn more about the latest tax slab rates in pakistan for the 2022-23 financial year.

Taxable income Income tax rate in Pakistan
When the taxable income does not exceed Rs600,000 The tax rate is zero
When the taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 2.5% of the amount exceeding Rs 600,000
When the taxable income exceeds Rs1,200,000 but does not exceed Rs2,400,000 15,000 rupees + 12.5% ​​of the amount exceeding 1,200,000 rupees
If the taxable income exceeds Rs2,400,000 but does not exceed Rs3,600,000 Rs165,000 + 20% of the amount exceeding Rs2,400,000
When the taxable income exceeds Rs3,600,000 but does not exceed Rs6,000,000 Rs405,000 + 25% of the amount exceeding Rs3,600,000
If the taxable income exceeds Rs6,000,000 but does not exceed Rs12,000,000 Rs 1,005,000 + 32.5% of the amount exceeding Rs 6,000,000
When the taxable income exceeds Rs12,000,000 2,955,000 rupees + 35% of the amount exceeding 12,000,000 rupees
Basic salary
Add: Salary Allowances:
  + House Rent Allowance
  + Conveyance Allowance 
  + Medical Allowance 
  + any other allowance
  --------------------------------------
  Gross income from salary =
  (-) Salary Related Deductions:
  --------------------------------------
  Net income / Taxable Income
  (Tax calculated according to the income tax slabs)

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