Taxable Income in PAKISTAN
Taxable Income means Total Income reduced by donations qualifying straight for deductions and certain deductible allowances.
In Pakistan, taxable income includes all sources of income earned by an individual or a business during a tax year. The following are some examples of taxable income:
Salary income: This includes all forms of remuneration received by an employee, such as basic salary, bonuses, commissions, and other benefits.
Business income: This includes income earned by a business through the sale of goods or services, as well as rental income and capital gains.
Investment income: This includes interest income from bank deposits, dividends, and capital gains from the sale of shares or other securities.
Rental income: This includes income earned from the rental of property.
Agricultural income: This includes income earned from the cultivation of crops or the raising of livestock.
It’s important to note that not all income is taxable in Pakistan, such as certain exemptions and deductions are available. It’s necessary to verify the rules and regulations of taxable income with the Federal Board of Revenue (FBR) website, as it may change over time.
