1. What is FBR Rent Tax?

The FBR (Federal Board of Revenue) rent tax is a tax levied on rental income in Pakistan according to prescribed slab rates. It's calculated as a percentage of the gross rent amount.

2. How Does the Calculator Work?

The calculator uses the FBR rent tax formula:

Where:

• \( Gross\ Rent \) — Total rental amount in PKR
• \( Slab\ Rate \) — Applicable tax rate percentage as per FBR

Explanation: The tax is calculated by applying the slab rate percentage to the gross rent amount.

3. Importance of Rent Tax Calculation

Details: Accurate rent tax calculation is crucial for compliance with Pakistani tax laws and proper financial planning for both tenants and landlords.

4. Using the Calculator

Tips: Enter gross rent amount in PKR and the applicable slab rate percentage. Both values must be valid (rent > 0, rate between 0-100).

5. Frequently Asked Questions (FAQ)

Q1: What are the current FBR slab rates for rent tax?
A: The slab rates vary based on different factors. Please consult the latest FBR circulars for current rates.

Q2: Is this tax applicable to all rental properties?
A: Most residential and commercial rental properties are subject to this tax, but there may be exceptions.

Q3: Who is responsible for paying this tax?
A: Typically the landlord is responsible, but terms may vary based on rental agreements.

Q4: Are there any exemptions?
A: Some categories may be exempt or have different rates. Check with FBR for details.

Q5: How often should this tax be paid?
A: Usually on an annual basis along with income tax returns, but consult a tax professional for specific cases.