FBR Salaried Tax Calculator
1. What is salary tax?
Salary tax is the income tax deducted from an individual’s salary or wages by the government. It is usually collected by the employer and paid to the Federal Board of Revenue (FBR).
2. Who is required to pay salary tax in Pakistan?
All salaried individuals earning above the taxable income threshold set by FBR are required to pay salary tax. Employers often deduct it automatically from monthly salaries.
3. How is salary tax calculated?
Salary tax is calculated based on annual income according to FBR tax slabs. The higher the income, the higher the tax rate. Allowances, bonuses, and other taxable benefits are included in the calculation.
4. When is salary tax deducted?
Salary tax is usually deducted monthly by the employer before paying the employee. At the end of the tax year, employees may file a tax return to reconcile any excess or shortfall.
5. What is the purpose of salary tax?
The salary tax collected by FBR is used to fund government operations, such as education, healthcare, infrastructure, and other public services.