The Income Tax is a tax that is payable on your annual income. The Income Tax Calculator 2020-2021 Pakistan is designed to facilitate the taxpayer to understand the tax ratio. Below you will find Income Tax Calculator 2020-2021. In 2020-2021 the income tax payable on the amount that exceeds 600,000 Rupees per year. In simple words, if you are earning more than 600,000 Rupees in a fiscal year starting from July 2019 to June 2020, then you are liable to pay income tax to FBR.
There are different tax slabs available for different incomes that a person earns in the whole year. Below is a list given to understand it better.
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Different Income Tax Slabs in 2020-2021
The FBR has given us the following Tax Slabs and income tax rates for all salary persons.
- If your salary does not exceed Rs. 600,000 the 0% tax will be applicable.
- If the salary exceeds Rs. 600,000 but it does not go beyond Rs. 1200,000 then the 5% Tax Rate will be applicable to the amount which is above 60,0000.
- Where the taxable salary income goes beyond Rs. 1,200,000 but not more than Rs. 1,800,000 the rate of income tax is Rs. 30,000 plus 10% of the amount exceeding Rs. 1,200,000.
- If the taxable salary income exceeds Rs. 1,800,000 but does not go beyond Rs. 2,500,000 the rate of income tax is Rs. 90,000 plus 15% of the amount exceeding the Rs. 1,800,000.
- When the salary income exceeds Rs. 2,500,000 but does not exceed Rs. 3,500,000 the rate of income tax is Rs. 195,000 plus 17.5% of the amount exceeding Rs. 2,500,000.
- If the taxable salary income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000 the rate of income tax is Rs. 370,000 plus 20% of the amount exceeding Rs. 3,500,000.
- When the taxable salary income goes beyond Rs. 5,000,000 but does not exceed Rs. 8,000,000 the rate of income tax is Rs. 670,000 plus 22.5% of the amount exceeding Rs. 5,000,000.
- If the taxable income exceeds Rs. 8,000,000 but does not exceed Rs. 12,000,000 the rate of income tax is Rs. 1,345,000 plus 25% of the amount exceeding Rs. 8,000,000.
- The taxable salary income when exceeds Rs. 12,000,000 but does not exceed Rs. 30,000,000 the rate of income tax is Rs. 2,345,000 plus 27.5% of the amount exceeding Rs. 12,000,000.
- And when the taxable income exceeds Rs. 30,000,000 but does not exceed Rs. 50,000,000 the rate of income tax is Rs. 7,295,000 plus 30% of the amount exceeding Rs. 30,000,000.
- Where the taxable income exceeds Rs. 50,000,000 but does not exceed Rs. 75,000,000 the rate of income tax is Rs. 13,295,000 plus 32.5% of the amount exceeding Rs. 50,000,000.
- If the taxable income exceeds Rs. 75,000,000 the rate of income tax will be Rs. 21,420,000 plus 35% of the amount exceeding Rs. 75,000,000.
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Conclusion
So that’s it. This is the income tax calculator for 2020-2021. Must use this calculator before filing your income tax return.
