(NOTE: NEW INCOME TAX SLAB RATES PROPOSED FOR Financial year 2013-14 are available, Please CLICK HERE to view)

These are the New Income Tax Slab Rates For Salaried Class for Financial year 2012-13 as approved by Pakistan Finance Act, 2012.

Tax will be paid at the rate of Gross Salary minus minimum of applicable slab Multiplied by Rate PLUS the Additional Tax. Say your salary is 800,000/- annually, tax will be (800,000 -750,000)*10% +17,500 =22,500 Annually.

Tax credits/ Exemptions for Medical, Construction of new house, Shares Investments, telephone and Electricity Bill and so forth may also be gained as per relevant sections


Where the taxable Income Exceed To but does not exceed rupees Rate Of Tax  Additional tax
0   400000 0.00%  
400000 to 750000 5.00%  
750000 to 1500000 10.00% 17500
1500000 to 2000000 15.00% 95000
2000000 to 2500000 17.50% 175000
2500000   10000000000 20.00% 420000

NOTE: INCOME TAX SLAB RATES PROPOSED FOR Financial year 2013-14 are available, Please CLICK HERE to view)


  1. Asghar Awan

    Finance bill 2012-13 is silent on Marginal Relief benefit. Kindly clarify MR benefit is still applicable or Not? If available, what are the marginal relief income brackets. The previous marginal relief brackets does not align with the current income brackets

  2. Junaid

    please inform how exemption percentage is available as per below
    Tax credits/ Exemptions for
    Construction of new house,
    Shares Investments,
    Telephone and Electricity Bill

  3. Rizwan Ali

    i am a salaried person, my annually gross income is RS 194000/-, So i pay Sales Tax on utility bills as well as on mobile. Sales tax is exempted or payable by Salaried Person. Can i return this amount.

  4. Rizwan

    Thanks Masood for sharing such a valuable source of information.

    How about allowances, expenses and Pension? How are allowances such as rent, conveyance and medical taxed?

    Also how do you show deductions for pension/provident fund and expenses in the payslip? Are they taxed?

    Is there any tax employer pays for hiring an employee?


  5. Ghazanfar Ali

    how to claim credit for the utility bills and medical…education etc.Will the tax amount be reimbursed if the above credit amount exceeds the tax amount??

  6. mian shafiq

    sir i want to calculate the perquisites.. and plz tell me if residence is being provided by the employer then how to calculate its rent. either we will take market value or some percentage of the basic pay?

  7. Shahnaz Farooq

    I am a contractual person of a Exam Board deducting 6% at source. I am e-enrolled on Fbr site but do not get a form applicable to 153(1) how can I fill out my return? Thanks

  8. sadia ashraf

    You mentioned above that teachers’ relief has been reduced to 40%. Bit the tax form does not allow to fill in this rebate. And also is there a official document stating the same?

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