Income Tax Return Calculator & Payroll Tax Template 2026-27 and 2025-26 - Salaried - Business Indv and AOP (Pakistan)

Description
Disclaimer: The decision has been made in PK Parliament during Budget Presentation in June 2026. President of Pakistan has Signed the Budget & Finance Bill 2026. It may varies later on depends on Govt. decisions as well.

Income Tax Return Calculator & Payroll Tax Template 2026-27 & 2025-26 - 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).”

Good news: The 9% surcharge on salaried individuals has been withdrawn.
(The 9% surcharge still applies to AOPs and non-salaried individuals with taxable income above Rs. 10M.) Pensioners (under age 70): same slabs; no surcharge.

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