PakIncomeTax
FY 2020–21 Income Tax Slabs — Salaried Individuals
Finance Act 2020 — effective July 1, 2020 to June 30, 2021. COVID-19 year. Lowest tax burden era in recent salaried history.
FY 2020–21 slab table
| Taxable Annual Income | Tax Rate |
|---|---|
| PKR 0 – PKR 6.00 Lac | 0% |
| PKR 6.00 Lac – PKR 12.00 Lac | 5% |
| PKR 12.00 Lac – PKR 18.00 Lac | PKR 30,000 + 10% of excess |
| PKR 18.00 Lac – PKR 25.00 Lac | PKR 90,000 + 15% of excess |
| PKR 25.00 Lac – PKR 35.00 Lac | PKR 1.95 Lac + 17.5% of excess |
| PKR 35.00 Lac – PKR 50.00 Lac | PKR 3.70 Lac + 20% of excess |
| Above PKR 50.00 Lac | PKR 6.70 Lac + 25% of excess |
Worked example — Rs. 150,000/month salary
For an annual taxable income of PKR 18.00 Lac in FY 2020–21, the tax payable works out to approximately PKR 90,000 per year (PKR 7,500/month), before any medical allowance or other exemptions.
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Full slab wording (as published by FBR)
- Where taxable salary income does not exceed Rs. 600,000 — 0%.
- Where taxable salary income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 — 5% of the amount exceeding Rs. 600,000.
- Where taxable salary income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000 — Rs. 30,000 + 10% of the amount exceeding Rs. 1,200,000.
- Where taxable salary income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000 — Rs. 90,000 + 15% of the amount exceeding Rs. 1,800,000.
- Where taxable salary income exceeds Rs. 2,500,000 but does not exceed Rs. 3,500,000 — Rs. 195,000 + 17.5% of the amount exceeding Rs. 2,500,000.
- Where taxable salary income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000 — Rs. 370,000 + 20% of the amount exceeding Rs. 3,500,000.
- Where taxable salary income exceeds Rs. 5,000,000 — Rs. 670,000 + 25% of the amount exceeding Rs. 5,000,000.
About FY 2020–21
Finance Act 2020 — effective July 1, 2020 to June 30, 2021. COVID-19 year. Lowest tax burden era in recent salaried history.