Tax slabs of salary income has been reduced from 17 to 6 in the finance act 2012-13 which are as under:

1.            Salary Income less than 400000 tax will be 0%

2.            Salary Income exceeds 400000 but does not exceed 750000  tax will be 5% of amount exceeding 400000

3.            Salary Income exceeds 750000 but does not exceed 1500000 tax will be 17500 + 10 % of amount exceeding 750000

4.            Salary Income exceeds 1500000 but does not exceed 2000000  tax will be 95000+ 15% of  amount exceeding 1500000

5.            Salary Income exceeds 2000000 but does not exceed 2500000 tax will be 175000 + 17.5% of amount exceeding 2000000

5.            Salary Income exceeds 2500000 tax will be 420000 + 20% of amount exceeding 2500000.

I have also developed a salary tax calculator to facilitate salaried persons to calculate their annual as well as monthly tax liability. You may find this calculator at http://aamirilyas.com/salary-tax-calculator-year-2012-13-calculate-tax-liability/

Related posts:

  1. Income Tax Rates in Pakistan – Year 2012
Hari says:

Amir Bhai what will be the effect on Salary if we have some bonus in a particular month i.e. Eid. Will it be adjusted in next month’s Salary Tax? Like Salary 102,496 (including Rs. 10,000 medical allowance) + Rs. 36,400/- Eid Bonus = What will be Tax Amounts for current month and next month.
Regards,

saeed says:

Do u think these slabs are still valid, somebody told me, in final approved budget, things are different.

Fahad says:

kya is saal b TEACHERS ko relief dya gaya hai???

Tahir Chuhan says:

Amir Bhai I what is the slab of Marginal Relief in 2012-2013

Fahad says:

i want it too

Asim says:

The slabs mentioned are correct but the tax amounts in addition to the percentage amounts tax are not correct.

Example: In 4th slab the finance bill states Rs. 92,500+15% of the amount exceeding Rs. 1,500,000 … where as here it says “95000+ 15% of amount exceeding 1500000″

Ref: http://www.fbr.gov.pk/budget/FinanceBill/FinanceBillFinal.pdf (page 45)

Can you please check on the Aamir Ilyas

Faisal H says:

I think, the formula used to calculate annual income tax for salary ranging from 400,000 to 750,000 is not correct, rather it is based on about 2 to 2.5% tax not on 5%!
if i am mistaken, then do correct me by email…

asif zaib says:

AOA my monthly salary is Rs 81000 per month please tell me about monthly deduction

Rashi says:

Tax amount on 60K per month is 1,333 p.m

Colombow says:

Great post . It helpd me and would have helped lot other’s !

Thanks .

Sharif Jamali says:

what will be tax of 60k/month???

Zeeshan Aslam says:

16000 yearly
or
1333 per month

Tahir Malik says:

Dear Amir Saheb, i am on salary and share both in a private hospital. How i may calculate my Tax?????????? I would be grateful for your advice, pleas email me on tarimalik1443@gmail:disqus.com

Dr. Tahir Malik
 

Amr1812 says:

Please share the way the tax can be calculated on an annual income coming in the recommended slabs

Aamir Ilyas says:

http://aamirilyas.com/budget-2012-13-brought-good-news-for-salaried-taxpayers/

Suhail Sattar says:

I am Suhail Sattar, working on a USAID funded project. Tell u what, this is the only good decision made by the Govt (No doubt this is done keeping in view the elections to be held in 2013). Nevertheless, salaried class is happy and especially the ones who get their tax deducted with honesty. :)
Thank you

Raja Fawad says:

Aamir bahi wo tareeka batein kay tax na daina paray :) ..

Aamir Ilyas says:

job chorh dein, khany peeny k elawa pesy khrch krna chorh dein. No income tax, no sales tax 

Muhammad Abid says:

If a salary is Rs. 415800, the rate of tax will be applicable on 15800 or 415800

Aamir Ilyas says:

15800. Try salary calculator

Mwa555 says:

 15800, am i right Aamir??

Aamir Ilyas says:

yes. you are right

Gillani Shah says:

People having gross income between 15lacs to 20 lacs annually, what would they have to pay? And what had they been paying earlier?

Salman69 says:

do we include the 400,000/- threshold as well in annual income or not?

Aamir Ilyas says:

It is to be included. you will have to take gross annual salary. 

Suleman says:

Blessings at least on salaried persons !

Adnan Ali says:

Where in the Finance Bill are these slabs discussed? Please provide reference. It would be helpful. Thanks.

Faizanaven says:

CNG rates are being heard to get increase by 15 Rupees. So there is nothing to cheer to this minute tax reduction.

Zardari ki maa ka yaar says:

Zardari and Gillani de pain da kussa paran.

Kamranmtm says:

These rates are now reasonable.  Now less Tax will be deucted from our salaries.

Aamirshehzad79 says:

These rates seems nice………….as compared to previous year, Now less
 I. tax would be deducted….

Bilal758 says:

What does amount exceeding means here in the slabs..

Crazynut120 says:

In jang news and geo tv reports , they say that on slab 5 , they will have to give 25% on income above 25 lakh n 347,500 onetime … Is that true? Please confirm

Aamir Ilyas says:

They have wrongly reported so, this is rate for business income and not for salary income
please visit
http://aamirilyas.com/tax-on-business-income-proposed-slabs-rate-in-budget-2012-13/ 

Salariya says:

your calculation does not match with the budget notes. difference of 5%
MAS

Aamir Ilyass says:

Those are rates of tax on business Income

Salariya says:

Should we calculate on 10, 15, 20 and 25 % slab for salary

Aamir Ilyas says:

No, 5, 10, 15 & 20% read this article for business tax 
http://aamirilyas.com/tax-on-business-income-proposed-slabs-rate-in-budget-2012-13/

Anwar Baloch says:

 No,  should calculate on 5, 10, 15 & 20%

Amjad Bukhari says:

Are the Slabs correctly mentioned?

Aamir Ilyass says:

yes

Aamir Ilyas says:

I have rechecked. You may believe my calculation. 

Aamir Ilyas says:

you can claim refund if your tax payment exceeds your tax liability.



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