Question 1

How does the FBR define a salaried vs non-salaried individual?

Accepted Answer

The Federal Board of Revenue (FBR) defines a salaried individual as someone whose basic salary and related allowances constitute at least 75% of their total taxable income for the year. If your salary is less than 75% of your total income, you are taxed under the non-salaried or business individual tax slabs, which typically have higher base rates.

Question 2

Does this calculator include the latest 2026 tax budget changes?

Accepted Answer

Yes, this calculator is fully updated with the FBR 2025-26 budget provisions. It incorporates the exact tax slabs, base taxes, and percentage rates applicable for the current fiscal year to ensure your monthly and annual deductions are calculated with complete accuracy.

Question 3

What happens if my employer deducts less tax than required?

Accepted Answer

If your employer under-deducts your income tax, the liability ultimately falls on you when filing your annual income tax return. You will be required to pay the outstanding balance along with a potential default surcharge before your return is accepted by the IRIS system. It is always wise to double-check their calculations using this tool.

Question 4

Can I deduct Zakat from my FBR taxable income?

Accepted Answer

Yes, Zakat paid under the Zakat and Ushr Ordinance is an officially recognized deductible allowance. When calculating your taxable income, the exact amount of Zakat deducted at source can be subtracted from your gross income, potentially dropping you into a lower tax slab.

Question 5

Are freelance remittances taxed at the same rate as local salary?

Accepted Answer

No, freelance IT and IT-enabled services remittances brought into Pakistan through formal banking channels are typically subject to a much lower, final withholding tax (often 0.25% to 1% depending on your registration status with PSEB). They are not taxed under the standard salaried slabs shown in this calculator.

Question 6

How do I check my Active Taxpayer Status (ATL)?

Accepted Answer

You can verify your Active Taxpayer List (ATL) status by visiting the official FBR e.fbr.gov.pk portal and using the 'Active Taxpayer (IT)' search function, or by sending an SMS with the format 'ATL (space) 13-digit CNIC' to 9966.