Pakistan Source Income


One of the Pakistan Source Income include Salary Income.

Tax treatment is calculated as per Section of 149 of Income Tax Ordinance. However there are a number of exemptions  (ie Medical Allowance @ 10 % of Basic Pay.which should be deducted from calculating Withholding tax on salary.

Tax Credits

There are a number of tax credits available to salaried person U/S 61,62,63 and 64.

Tax is chargeable to salary income when it is paid.

As pert Circular 18/2004 issued by Board state that employer should make adjustment ( excess / deficiencies ) arising out of any previous deduction or failure to make deduction .


Salaried income is exempt up to Rs. 400,000.