Income Tax Rates 2022-23 are valid from 01-07-2022 till 30-06-2023
Income Tax Rates 2022-23
| TAXABLE INCOME | TAX RATES |
|---|---|
| Where the Taxable Income does not exceed Rs. 600,000/- | The tax rate is zero (0) |
| Where the Taxable Income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000/- | 2.5% of the amount exceeding Rs. 600,000/- |
| Where the Taxable Income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000/- | Rs. 15,000 + 12.5% of the amount exceeding Rs. 1,200,000/- |
| Where the Taxable Income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000/- | Rs. 165,000 + 20% of the amount exceeding Rs. 2,400,000/- |
| Where the Taxable Income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000/- | Rs. 405,000 + 25% of the amount exceeding Rs. 3,600,000/- |
| Where the Taxable Income exceeds Rs. 6,000,000 but does not exceed Rs. 12,000,000/- | Rs. 1,005,000 + 32.5% of the amount exceeding Rs. 6,000,000/- |
| Where the Taxable Income exceeds Rs. 12,000,000/- | Rs. 2,955,000 + 35% of the amount exceeding Rs. 12,000,000/- |
Here are Tax slab table for income tax on a person earning income under the head salary in Pakistan. These are applicable to the person whose taxable income is more than 75% of the income head salary in the Income Tax Ordinance, 2001 amended up to 30th June 2022. Some terms are defined below for a proper understanding of the Taxation system.
What is Salary?
Salary means any amount received by an employee from any employment, whether of a revenue or capital nature. ( Income Tax Ordinance, 2001 )
What is Basic Salary?
Amount received by an employee from the employer without including benefits, allowances, and perquisites.
What is Tax Allowance?
Additional benefits paid by the employer to the employee such as Medical Allowance, Conveyance allowance, House rent allowance, Utilities, and others.
What is Reimbursement?
Amount spent by the employee but paid back by an employer including Medical Facility, TA/ DA, Salary of Domestic servants etc.
What is Taxable Income?
Taxable income is the amount of an individual’s or business’ income that is subject to income tax.
What is Tax Rate?
A tax rate is the percentage of an individual’s or corporation’s income that is owed to the government in taxes.