1. What is Income Tax Splitting?

Income tax splitting in Pakistan refers to calculating the tax liability based on different income slabs and their corresponding tax rates. This calculator helps estimate tax for a specific income at a given rate.

2. How Does the Calculator Work?

The calculator uses the basic tax formula:

Where:

• \( Income \) — Total taxable income in Pakistani Rupees
• \( Rate \) — Applicable tax rate in percentage

Explanation: The calculation multiplies the income by the tax rate (converted from percentage to decimal) to determine the tax amount.

3. Importance of Tax Calculation

Details: Accurate tax calculation is essential for financial planning, budgeting, and ensuring compliance with Pakistan's tax laws and regulations.

4. Using the Calculator

Tips: Enter income in PKR and tax rate in percentage. Both values must be valid (income > 0, rate between 0-100).

5. Frequently Asked Questions (FAQ)

Q1: Are there different tax rates for different income levels?
A: Yes, Pakistan has progressive tax rates with different slabs. This calculator uses a single rate for simplicity.

Q2: Does this include tax credits or deductions?
A: No, this is a basic calculator. Actual tax liability may be affected by various deductions and credits.

Q3: Is this calculator official?
A: No, this is for estimation only. Always consult FBR or a tax professional for official calculations.

Q4: What's the current tax year in Pakistan?
A: The tax year runs from July 1 to June 30 in Pakistan.

Q5: Are there different rates for salaried vs non-salaried?
A: Yes, Pakistan has different rate schedules for salaried and non-salaried individuals.