How to Save Tax on Salary in Pakistan
How to Save Tax on Salary in Pakistan A Guide for Smart Tax Planning For salaried individuals in Pakistan, understanding how to manage and save on taxes can significantly increase take-home income. The tax laws in Pakistan offer several exemptions, deductions, and allowances that can be leveraged to reduce your taxable income legally. In this blog, we will explore effective strategies to save tax on your salary in Pakistan. 1. Understand the Income Tax Slabs and Rates Before diving into tax-saving strategies, it's essential to understand the income tax slabs and rates in Pakistan. The Federal Board of Revenue (FBR) updates these slabs periodically, and they vary depending on whether you are a salaried or non-salaried individual. The tax rates range from 0% for lower-income brackets to 35% for higher-income brackets. Being aware of the applicable slab helps in planning your tax-saving investments more effectively. 2. Maximize Benefits from Salary Components One of the easiest ways ...