Updated FBR Income Tax Rates 2018-19 for Salaried Persons in Pakistan

The Federal Government employees along with Defense Employees in the recent Budget 2018-19 have got a lot of benefits in which one of the most prominent was relief in tax on salary.

Government Employees often complain about the taxes on their salaries, but now this problem has been resolved for many government employees getting per month salary Rs. 100,000 or less or aggregate Rs. 1,200,000 per year. Now, these will be exempt from tax. That will also give these employees advantage of getting an additional payment that otherwise was being deducted as income tax from salary.

Here is the fresh Income Tax Rates Chart on Salary as proposed in the Budget 2018-19:

Income Tax Slabs 2018-19 Salaried Persons Finance Bill 2018 

1Up to Rs1,200,0000% tax
2Rs 1,200,000 to Rs2,400,0005% tax
3Rs 2,400,001 to Rs4,800,00010% tax
4Rs 4,800,001 and above15% tax

All of the above tax rates will effective from 1st July 2018, and the employees will get the real benefits in August against their salary of July 2018. This year is going to be best for government employees.

Tax System in Pakistan

Taxes are the main source of revenues for the government of modern ages. The government imposes taxes to collect revenue to run the government, to impose its policies, for fair distribution of wealth, and to administer the government is the best way.

Like other countries of the world, Pakistan has also a proper taxation system that is being regulated in the country according to Income Tax Ordinance, 2001, Sales Tax Act, 1990, Federal Excise Act, 2005, Custom Act, 1969, Capital Value Tax levied through Finance Act, 1989 and few others that are mostly in shape of amendments. Federal Government is the only body which is empowered to levy and collect the tax. After that, the constitution gives the power to the provincial government to legislate on taxes.

According to the Constitution of Pakistan, the Federal Government in Pakistan can impose the following taxes in the country.

  • Duties of customs, including export duties.
  • Duties of excise, including salt, but not including alcoholic liquors, opium or other narcotics;
  • Taxes on income other than agricultural income;
  • Taxes on corporations.
  • Taxes on the sales and purchases of goods imported, exported, produced, manufactured or consumed, except sales tax on services.
  • Taxes on the capital value of the assets, not including taxes on the immovable
  • Taxes on mineral oil, natural gas, and minerals for use in generation of nuclear energy.
  • Taxes and duties on the production capacity of any plant, machinery, undertaking, establishment or installation in lieu of any one or more of them.
  • Terminal taxes on goods or passengers carried by railway, sea or air; taxes on their fares and freights.

In addition to taxes mentioned above that are imposed by the Federation according to the Constitution of Pakistan, the following are the taxes that are levied by the provinces.

  • Agriculture income tax
  • Sales tax on services
  • Taxes on the transfer of immovable property
  • Professional tax
  • Tax on luxury houses
  • Tax on registration of luxury vehicles etc.
  • Property tax
Abdul Hadi
Abdul Hadi

Author is a C.A and professional blogger who has been writing since ten years. He specializes on various topics including Business, Technology, News, and local reviews. Abdul graduated from Skans School of accountancy in 2014. He like to produce useful guides for local readers. He also writes for different newspapers and blogs. You can reach him on Facebook

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73 Replies to “Updated FBR Income Tax Rates 2018-19 for Salaried Persons in Pakistan”
  • Murad ali
    21/08/2019 at 5:00 PM

    Dear Sir
    i am working with a non profit organization.my salary is 150000 for a month,but they do a contract for 6 month with me after 6 month if i will became jobless and my per years income became 900000.so i will pay the income tax or not.my job is not permanent.some time i am on home and some time i am taking 50000 salary.plz need ur input

    Reply
    • SHEIKH ZAIN ADVOCATE
      27/10/2019 at 7:29 PM

      sir ap ki annual salaray per tax lagy ga agr ap ki annual salary total 4 lakh one year ki banti hai tu phr ap ka tex zero ho gaa or 400000 to 800000 salary hai one year ki tu 1000 income tax dena pary gaa

  • adnan
    11/03/2019 at 4:31 PM

    per month salary 300,000
    per month salary 65,000
    per month salary 40,000
    per month salary 35,000
    per month salary 36,000
    Tax Calculation tell me and issuing 40000 ki 39917 deani hy

    Reply
  • Aziz
    17/01/2019 at 7:35 AM

    I want to know tax on commissions. I work in sales and support department for a software house. We are software, branding and website design and development and export it to US, UK, Middle East etc. My commission was PKR 100,000 and they deducted 15% (PKR 15,000) as tax. Is this right on software export sales for an agent how much is that.

    Reply
  • MAJID HUSSAIN
    12/01/2019 at 6:34 PM

    i want to understand about INDIVIDUAL BUSINESS TAX SLAB

    IF YEARLY INCOME IS 2280000
    WHAT WILL BE THE CHARGEABLE TAX AMOUNT

    Reply
  • Sayyed
    06/01/2019 at 2:13 AM

    Please let me know:

    1. Here you say that upto Rs. 1,2 million per year income has zero tax. Whereas official slabs are showing:

    Rs. 400,000 to 800,000 has Rs. 1,000 tax.
    Rs. 800,000 to 1,200,000 has 2000 tax
    Rs. 1,200,000 to 2,400,000 has 5% tax on the amount exceeding 1,200,000 and so on

    So please make correction or explain if there is really zero tax for income upto 1,200,000/- ?

    2. For tax purposes a Sole proprietor is considered and taxed as a company or an individual? Everyone is explaining things to Salaried persons, where does an individual sole proprietor stand?

    3. How much tax for an individual IT professional (Self employed – working as a sole proprietor business or individual)?

    4. If he does web development work and bring remittances from abroad either under his name or in his sole proprietor company account? Is he taxable or all his inbound money is tax exempted?

    5. If he owns a 120 sq. yard house in G. Johar (bought from mother for Rs. 11,000/- official value), is it taxable or needs to be declared? I heard upto only more than 250 sq.yard house is required to be declared and is taxable.

    6. Same is with old 1995 model car which is though 1300 cc but too old, does it need to be declared and is taxable?

    7. If an old time forex bank account has 6000+ balance (all foreign remittances), does it need to be declared and is taxable? I believe all remittances are tax exempted so no need to be declared either. Please explain.

    A point by point answer will be extremely appreciated and I will sincerely be grateful.

    Reply
    • Muhammad Ahmed
      19/08/2019 at 12:52 PM

      please answer

  • Muhammad Waseem
    25/12/2018 at 7:18 PM

    18000 sallary par kitna tax hoga

    Reply
    • Ali
      25/12/2018 at 10:00 PM

      No tax on that.

  • Noman
    18/11/2018 at 1:17 PM

    i want to know i am a salaried person and they are deducting tax on banking transactions. Due to this i want to get registered for fbr to avoid unnecessary taxes. But i dnt know how to do that. i already did registration and got password.

    Reply
  • Hasnain khan Malkani
    19/10/2018 at 10:33 PM

    koi mere help kr sakta ha mujhy tax rates or exemption List sent kr sakta ha.

    Reply
  • Owais
    15/10/2018 at 3:34 PM

    what will be the tax on rent being paid to us by a company for our house? The total rent paid by the company annually is 6,093,409 Pak Rupees. We are filler and so is the company

    Reply
  • Shoaib Pasha
    04/10/2018 at 11:39 AM

    Kindly Contact me for tax exemptions up to 50%. Call me on *+92347-5048777.

    Reply
  • Muhammad Nouman
    25/09/2018 at 5:58 PM

    IF GROSS SALARY IS RS.48,000/- PER MONTH

    WHAT WOULD BE THE INCOME TAX PER MONTH.

    Reply
    • Asad
      05/10/2018 at 1:07 PM

      There is no tax for upto Rs 100,000 salary. Tax start if you earn more than 1.2 million rupess (12 Lac) in a tax year.

    • Hasnain khan
      19/10/2018 at 10:20 PM

      83.33 Rupees per month

    • Liaqat Ali Khan
      06/03/2019 at 10:29 AM

      Rs 83 per month

  • Abdul Kabir
    24/09/2018 at 3:15 PM

    If the monthly salary is rs.49500/ how much tax would be deducted per month

    Reply
  • sumaira
    06/09/2018 at 11:49 AM

    if salary is 40,000 monthly. he/ she will pay income tax?? if yes how much amount will be paid??
    According to budget of 2018-2019

    Reply
    • Shakeel Akhtar
      11/09/2018 at 5:37 PM

      sumaira,
      it is mentioned that from monthly salary Rs. 33,333 to Rs. 66,666 annual Tax liabillity is fixed as Rs. 1000 (per Month it will be Rs. 83)..

    • Faisal Ahmed
      19/12/2018 at 12:44 PM

      Monthly income tax will be amount Rs. 83/- only and Annual Income Tax will be amount Rs. 1000/- for the year 2018-2019

  • Komal
    28/08/2018 at 11:14 AM

    if salary per month is
    70000
    45000
    35000
    what would be tax rate
    i have found different calculations thats confusing !

    Reply
    • Imran
      29/08/2018 at 12:11 PM

      Plz confirm all salary getting for one come

    • Nadeem Siyal
      02/09/2018 at 1:34 PM

      If per month Salary is Rs. 70000 then Yearly tax would be Rs. 2000
      If per month Salary is Rs. 45000 then Yearly tax would be Rs. 1000
      If per month Salary is Rs. 35000 then Yearly tax would be Rs. 1000

      If you want to calculate on monthly basis then divide it by 12.

      Example:
      2000/12=166.67=167.00 per month
      1000/12=83.33=83.00 per month

    • Fahad
      10/01/2019 at 12:35 PM

      please send me soft copy of this schedule 2018-19

  • Bushrah hanif
    10/08/2018 at 2:58 PM

    185000 x 12 = 2,220,000

    Less Exemption 1,200,000

    Taxable Income 1,020,000 x 5% = 51000 (This is Year’s Tax)

    Per Month Tax = 51000 / 12 = 4,250

    So his actual tax would be 4,250 per month. as per new tax slab

    Reply
    • Waseem Burney
      05/02/2019 at 9:08 AM

      Thank you very much for this. Can you please share calculation of formula if monthly salary is Rs. 500,000/-

  • woooo
    23/07/2018 at 8:12 PM

    can someone share link of this in PDF format

    Reply
  • Ahmad Nadeem
    20/07/2018 at 11:39 AM

    Father gifted his 3.5-Marla residential plot to his daughter. How much Taxes on the transfer of immovable property of 3,5-Marla residential plot is required to be paid?

    Reply
    • Hasnain khan Malkani
      19/10/2018 at 10:28 PM

      I think 10% rate
      total value ka

  • umar
    20/07/2018 at 10:04 AM

    What tax percentage on Services LAst Yeat is 10 Percent for filer, & 8% for Company registered but FY 2018-19 please guide me

    Reply
  • Muhammad Salman Naseer
    14/07/2018 at 7:09 PM

    my monthly salaryy is 185000 rupees monthly income tax?

    Reply
    • Hassan Khokhar
      18/07/2018 at 3:59 PM

      Kindly Contact me for tax exemptions up to 50%. Call me on +92345-3165633.

    • Asad Ullah
      19/07/2018 at 7:22 PM

      Income Tax per month Rs.4,416.67

    • Rizwan
      24/07/2018 at 11:57 AM

      Dear Salman tax deduction will be 4250

    • Arslan Irshad
      27/07/2018 at 5:57 PM

      @rizwan

      How? I think that is wrong!

      185000 x 12 = 2220000

      2220000 x 0.05 = 111000 (This is Year’s Tax)

      Per Month Tax = 111000 / 12 = 9250

      So his actual tax would be 9250 per month.

    • shumila Khan
      31/07/2018 at 12:19 PM

      your monthly income tax will be 4250.

    • Muhammad Kalim
      30/07/2018 at 4:42 PM

      185000 x 12 = 2,220,000

      Less Exemption 1,200,000

      Taxable Income 1,020,000 x 0.05 = 5100 (This is Year’s Tax)

      Per Month Tax = 5100 / 12 = 425

      So his actual tax would be 425 per month. as per new tax slab

    • Bushrah hanif
      10/08/2018 at 2:56 PM

      185000 x 12 = 2,220,000

      Less Exemption 1,200,000

      Taxable Income 1,020,000 x 5% = 51,000 (This is Year’s Tax)

      Per Month Tax = 51000 / 12 = 4,250

      So his actual tax would be 4,250 per month. as per new tax slab

    • Muhammad Zohaib
      25/09/2018 at 4:26 PM

      185000 x 12 = 2,220,000

      Less Exemption 1,200,000

      Taxable Income 1,020,000 x 5% = 51,000 (This is Year’s Tax)

      Per Month Tax = 51000 / 12 = 4,250

      So his actual tax would be 4,250 per month. as per new tax slab

    • Shams Omair
      08/10/2018 at 7:48 PM

      9,250

    • Hasnain khan Malkani
      19/10/2018 at 10:24 PM

      185000 Tax 2018-2019
      Monthly Tax: 4250
      Yearly Tax: 51000

  • Said Rehman
    13/07/2018 at 9:25 AM

    My Pay is Rs.126,028/month in July 2018
    How much tax will deduct from me per month?

    Reply
    • Hassan Khokhar
      18/07/2018 at 3:59 PM

      Kindly Contact me for tax exemptions up to 50%. Call me on +92345-3165633.

  • MUHAMMAD ALI
    11/07/2018 at 2:52 PM

    IF GROSS SALARY IS RS.70000/- PER MONTH

    WHAT WOULD BE THE INCOME TAX PER MAONTH.

    Reply
    • Fakhar
      19/07/2018 at 5:21 PM

      0

    • Asad Ullah
      19/07/2018 at 7:25 PM

      Per month tax deduction is Rs.166.67

    • Asad Ullah
      19/07/2018 at 7:31 PM

      For tax working, you can contact me at 0313 2354130.
      [email protected]

    • zubair siddeeque
      23/07/2018 at 1:07 PM

      you are exempted

  • Rizwan Saifi
    05/07/2018 at 1:18 PM

    the proposed amnesty is only for Government and defense employees only or for all private institutions too can any one help

    Reply
    • Fakhar
      19/07/2018 at 5:22 PM

      For All salaried persons weather Government or Private

    • Asad Ullah
      19/07/2018 at 7:26 PM

      Voluntary Declaration of Domestic Assets Act, 2018

      Application
      –Every company, association of persons and all citizens of Pakistan excepts holders of public office and their families
      –Undisclosed income and domestic assets held by the persons in Pakistan,
      Excepts where proceedings are pending in any court of law in respect of the
      Undisclosed income or domestic assets

      Period of Applicability
      Shall be made after the tenth day of April 2018 on or before the 30th June 2018 (extended upto 31st July 2018)

      Charge of Tax
      a)Foreign currency held in a foreign currency account in Pakistan2%
      As on 31st March 2018 and encashed in rupees
      b)Investment in Government Securities – Foreign Currencies2%
      c)Other Assets5%

      Other Assets
      oUndisclosed income – as declared
      oOpen plots and land – cost of acquisition or FBR value
      oSuper Structure – Rs. 400 per super feet
      oApartments and flats – cost of acquisition or Provincial
      stamp duty rates, whichever is higher
      oMotor Vehicles – acquired through by any means – Cost
      oSecurities and shares traded / not traded on stock exchange – Cost / Face
      oGovernment securities – Face value
      oGold – Rs. 4,000/- per gram
      oOther precious stones and metals – market rate as on 09.04.18
      oStock-in trade – market rate as on 09.04.18
      oPlant and machinery – actual cost of acquisition
      oAccounts receivable – actual cost of acquisition
      oOther assets – actual cost of acquisition
      oPrize bonds, cash and bank balances – bank accounts as of 09.04.18
      Face value for other assets

      Foreign Assets (Declaration and Repatriation) Act, 2018

      DescriptionRate

      1.Liquid assets not repatriated5%
      2.Immovable assets outside Pakistan3%
      3.Liquid assets repatriated and invested in
      Government securities upto 5 years in
      US dollars denominated bonds with2%
      Six monthly profit payment in equivalent
      Rupees (rate of return 3%) and payable
      On maturity in equivalent Rupees
      4.Liquid assets repatriated2%

  • ATHAR RIAZ
    04/07/2018 at 12:18 AM

    can u send me surchrarges slab(in incometax) of pakistan???????

    Reply
  • MUHAMMAD FARRUKH
    30/06/2018 at 5:47 PM

    MY GROSS SALARY 22900
    OVER TIME 3000 TO 40000

    NET SALARY 50000 TO 65000

    TAX KITNA KUTYGA

    Reply
    • zahid Ishaq
      03/07/2018 at 3:46 PM

      Net income 65000
      tax deduct 83.33
      per month

    • adnan
      11/03/2019 at 4:15 PM

      per month salary 300,000
      per month salary 65,000
      per month salary 40,000
      per month salary 35,000
      per month salary 36,000
      Tax Calculation tell me and issuing 40000 ki 39917 deani hy

    • kamal
      11/07/2018 at 12:53 PM

      no tax deduction for you from july 1 2018

    • Fakhar
      19/07/2018 at 5:23 PM

      Zero. You are exempted

  • M. Yaqoob Khan
    28/06/2018 at 3:20 PM

    If I have earned annual Salary 3,000,000 (30 Lac) then advise me weather I will pay income tax on whole 30 Lac amount or exempted Rs 1,200,000 (12 Lac)

    Reply
    • Hassan Khokhar
      18/07/2018 at 3:58 PM

      Kindly Contact me for tax exemptions up to 50%. Call me on +92345-3165633.

  • Farrukh
    28/06/2018 at 1:00 PM

    2,450,000
    Exempt 1,200,000/-
    Balance 1,250,000/-
    Rate 5%
    Annual 62,500
    P/M 5,208

    Reply
    • Hassan Khokhar
      18/07/2018 at 3:58 PM

      Kindly Contact me for tax exemptions up to 50%. Call me on +92345-3165633.

    • John
      21/07/2018 at 10:08 AM

      Sub kuch phone per hi bata hai tumne

    • Shoaib Pasha
      04/10/2018 at 11:42 AM

      AOA, Kindly Contact me for tax exemptions up to 50%. Call me on *+92347-5048777.

  • Adnan Siddiqui
    21/06/2018 at 4:03 PM

    a person earning 2450000 will have to pay 2400000 * 5% = 120000 and 50000 * 10 % = 5000 in total the tax would be 125000 on the amount of 2450000.

    thanks

    Reply
    • Mohammad Ilyas
      03/07/2018 at 2:29 PM

      TAX WOULD BE
      65000/= PER YEAR

    • Muhammad Imtiaz
      04/07/2018 at 3:00 PM

      no.. 2450000 me ist 1200000 pr koi tax nei, next 1200000 pr (1200000*5/100=) Rs.60,000, jab k next 50000 pr (50,000*10/100)= Rs. 5000 ho ga.
      so 2450000 pr total tax Rs. 65,000 liya jaey ga.

  • Shakeel
    29/05/2018 at 10:47 AM

    @ 5%

    Reply
  • Faisal Ahmed
    22/05/2018 at 2:45 PM

    What would be the tax amount of a person who is earning 2450000 per annum?

    Reply
    • Ammad Aslam
      31/05/2018 at 12:09 PM

      @Faisal

      Why don’t you read the article?

    • noraiz Salahuddin
      04/06/2018 at 10:17 AM

      245000/year

    • Adil
      05/06/2018 at 12:05 PM

      245000 dear at the rate of 10%

    • syed noor ali shah
      23/06/2018 at 10:28 AM

      And will there any fixed amount along with this 10%

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