Pakistan Tax Guides

It depends on the filing tests in section 114, which consider more than tax payable. Income level, certain assets, business status and other conditions can create a filing obligation, so having no tax due does not automatically mean no return is required.

The Active Taxpayer List is FBR’s record of online income-tax return filers for the relevant tax year. ATL status commonly gives access to lower withholding-tax rates; late filers may need to pay the applicable surcharge for inclusion.

Keep income and salary certificates, bank and withholding records, evidence for deductions or credits, and details supporting your wealth statement, assets and liabilities. The exact records depend on your income sources and claims.

These are advance income tax collected as you spend: 15% of a mobile load or internet bill under Section 236, 7.5% of a home electricity bill of PKR 25,000 or more for people off the Active Taxpayer List under Section 235, and 0.8% of a day’s bank cash once it passes PKR 50,000 for the same group under Section 231AB. All three count towards your income tax for the year and are claimed on your return.

Yes, but only on the profit, and it is taxed on its own rather than added to your salary. Shares bought on or after 1 July 2024 are charged 15% however long you hold them, while older holdings can be lower or exempt. Mutual funds are 15% for a person. NCCPL or your fund company works it out and collects it, then issues a certificate you file with your return.

Not by FBR — agricultural income is exempt from federal income tax. Your province taxes it instead, and since 1 January 2025 Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan all use the same scale: nothing on the first PKR 600,000, then 15% rising in steps to 45% above PKR 5,600,000. Punjab, KP and Balochistan also charge a fixed amount per acre on land above 12½ acres.

Annual taxable salary is applied to progressive bands. For FY 2026–27, the first PKR 600,000 is at 0% and the top marginal band is 35%; the annual result is commonly spread across payroll withholding during the year.