Income Tax Return Calculator & Payroll Tax Template 2025-26 and 2024-25 - Salaried - Business Indv and AOP (Pakistan)

Description
Disclaimer: The decision has been made in PK Parliament during Budget Presentation in June 2025. President of Pakistan has Signed the Budget & Finance Bill 2025. It may varies later on depends on Govt. decisions as well.


Income Tax Return Calculator & Payroll Tax Template 2024-25 & 2023-24 - For Salaried, Business Individuals and AOP (Pakistan) - Helps to Calculate Tax Easily.

 “Tax will be calculated on the gross taxable salary (which typically includes basic pay, house rent, and other allowances), and not on the net salary (i.e., salary after loan repayments or other personal deductions).”


INCOME TAX BASICS
Before Registration and Filing of your Income Tax Return, it is recommended that one should establish basic understanding regarding these processes. Knowledge of basic concepts would not only ensure that the tasks are performed easily but also in the prescribed manner.

TAXABLE INCOME
Taxable Income means Total Income reduced by donations qualifying straight for deductions and certain deductible allowances.


TOTAL INCOME
Total Income is the aggregate of Income chargeable to Tax under each head of Income.


HEAD OF INCOME
Under the Income Tax Ordinance, 2001, all Income are broadly divided into following five heads of Income:
Salary;
Income from property;
Income from business;
Capital gains; and
Income from Other Sources


RESIDENT
An individual is Resident for a Tax Year if the individual:
Is present in Pakistan for a period of, or periods amounting in aggregate to, one hundred and [eighty-three] days or more in the tax year;

Is present in Pakistan for a period of, or periods amounting in aggregate to, one hundred and twenty days or more in the tax year and, in the four years preceding the tax year, has been in Pakistan for a period of, or periods amounting in aggregate to, three hundred and sixty-five days or more; or
Is an employee or official of the Federal Government or a Provincial Government posted abroad in the Tax Year.
An Association of Persons is Resident for a Tax Year if the control and management of its affairs is situated wholly or partly in Pakistan at any time in that year;
A Company is Resident for a Tax Year if :
It is incorporated or formed by or under any law in force in Pakistan;
The control and management of its affairs is situated wholly in Pakistan at any time in the year; or
It is a Provincial Government or a local Government in Pakistan.