Pakistan’s Federal Budget Bill 2011-12 for the next year has just been announced and tabled in the parliament and we are pleased to share with you the salient features of this Pakistan Budget bill with you. A detailed analysis will be delivered once the bill is actually enacted into an act of the parliament. Please give your suggestion before the same is passed.

The Proposed Salary Income Tax Slab Rates 2011-12 In Pakistan Federal Budget Bill are as follows:

1.   Where the taxable income does not exceed Rs.350,000
0%

2.   Where the taxable income exceeds Rs.350,000 but does not exceed Rs.400,000
1.50%

3.   Where the taxable income exceeds Rs.400,000 but does not exceed Rs.450,000
2.50%

4.   Where the taxable income exceeds Rs.450,000 but does not exceed Rs.550,000

3.50%

5.   Where the taxable income exceeds Rs.550,000 but does not exceed Rs.650,000
4.50%

6.   Where the taxable income exceeds Rs.650,000 but does not exceed Rs.750,000
6.00%

7.   Where the taxable income exceeds Rs.750,000 but does not exceed Rs.900,000
7.50%

8.   Where the taxable income exceeds Rs.900,000 but does not exceed Rs.1,050,000
9.00%

9.   Where the taxable income exceeds Rs.1,050,000 but does not exceed Rs.1,200,000
10.00%

10.   Where the taxable income exceeds Rs.1,200,000 but does not exceed Rs.1,450,000
11.00%

11.   Where the taxable income  exceeds Rs.1,450,000 but does not exceed Rs.1,700,000
12.50%

12.   Where the taxable income exceeds Rs.1,700,000 but does not exceed Rs.1,950,000
14.00%
13.   Where the taxable income exceeds Rs.1,950,000 but does not exceed Rs.2,250,000
15.00%

14.   Where the taxable income exceeds Rs.2,250,000 but does not exceed Rs.2,850,000
16.00%
15.   Where the taxable income exceeds Rs.2,850,000 but does not exceed Rs.3,550,000
17.50%

16.   Where the taxable income  exceeds Rs.3,550,000 but does not exceed Rs.4,550,000,

18.5%

17.   Where the taxable income exceeds Rs.4,550,000.
20.00%”;

24 Comments

  1. Ali

    If any one wants to pay tax but his salary is not taxable (250,000 per annum) he wants to pay Rs. 2,500 as income tax. What is the way to deposit this (mean in what head this is deposited and what should mentioned on the face of challan).

  2. Najam Bashir

    whether medical allowance is included for calculation of medical allowance, please tell me all the elements of salary for calculation of income tax on salary

  3. Khalid

    Dear Sir/Madam,

    I need information regarding my previous employment in Pakistan. Im originally from Pakistan and used to work in a hotel in Multan as a full time Assistant Cook position for nearly 2.5 years from 2004 to 2006 and in between 2004-2007 few ownership of the Hotel been changed. In 2007 I moved to Australia, studied as a Commercial Chef also Hospitality degree and living here from last 5 years and working as a Chef position in a restaurant.

    I got a good job here and employer/company sponsored me and my family to work and live in Australia. During my paperwork / experience verification with Australian immigration department they checked online and found that my previous employer haven’t paid my tax and now they can reject my application and they can ruin my future. They sent me an email to explain them how income tax and tax system work in Pakistan?..

    Here are few of my questions please help me out to figure them out.

    1. How could i get information that my previous employer in Pakistan paid income tax on my wages?

    2. My monthly salary was RS.6000/- x 12 = Rs. 72000/-PA I was eligible to pay income tax or i was exempt from it?

    3. How can i get the income tax occupation list of FBR? Assistant Cook / Cook / Chef are in a Occupation list to pay income tax in 2004-2006?

    3. What is the basic pay rate/ scale or monthly / annually taxable income in Pakistan?

    4. When or in which year FBR online income tax verification online systems started??

    5. How can FBR department can help me as a Pakistani in this case???

    6. I dont have NTN.

    Looking forward to hearing from you soon, your prompt reply will be highly appreciated.

    Kind regards,

    Khalid

  4. Kashif Rafique Ansari

    Can an employer deduct salary tax of an employee on number of days basis if he/she has joined the organization on 20th of month? what procedure will be applied?

  5. Dawar

    Dear Khalid,
    although i am no tax professional, i do have sufficient knowledge to answer some of your concerns.
    Since your income was quite low even for the 2004-5 I highly doubt that your income was subject to tax since it would fall below the minimum taxable benchmark. Secondly you do not need to independently file tax returns if the only source of your income is salary. Please refer to the following extract from Section 115 of Income Tax Ordinance, 2001

    “In case of a taxpayer deriving income from salary only, the prescribed annual statement filed by the employer will be considered as sufficient discharge of liability and shall be treated as a return of income furnished under section 114.”

    this means that the annual statement filed by your employer would be sufficient to prove the discharge of your tax liability. Finally the eFbr or online enrollment program was initiated sometime in later part of the last decade most likely after 2008 or 2009. So you will most likely not have a computerized tax record. I suggest you call the FBR helpline for your specific issues.

    Regards
    Dawar S.

  6. Ikram

    Dear Khalid,

    Minimum taxable income in Pakistan is 350000. AS you were getting 72000 PA therefore you were not required to pay income tax during your employment here in Pakistan. Therefore your case is very simple. Your income was taxfree.

    Regards,

    Ikram

  7. Shakeel Ahmed

    Dear Sir/Madam
    considering exixting inflation rates in pakistan and too much high rate of poverty, its needed thresh hold of rate of income required to be revised near to income above 10 lacs because every person purchasing anything is paying 16% GSTon it on daily basis,when bying fuel,Grocery,medicine everything. WE are paying above 16% , if a salaried person having salary of for say 50,000/ as sample case,.
    he/she has to pay the following expenditure everymonth, where income tax stands?
    Rent of house 10000/-
    monthlly Grocery 20,000
    school fee for 03 childrens 10,000
    fuel expeness 5000
    utility Bills, Electricity,gas,phone 5000

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