1. What is Home Rent Tax in Pakistan?

The home rent tax in Pakistan is a withholding tax deducted at source on rental income. For the tax year 2023-24, individuals receiving rent above a certain threshold are subject to this tax.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross\ Rent \) — Total annual rent amount in PKR
• \( Threshold \) — Non-taxable amount (300,000 PKR for 2023-24)
• \( Slab\ Rate \) — Tax rate percentage (typically 5%)

Explanation: The tax is calculated only on the amount exceeding the threshold at the specified slab rate.

3. Importance of Rent Tax Calculation

Details: Accurate rent tax calculation helps tenants comply with tax laws and landlords properly declare their rental income. It's essential for proper financial planning and tax filing.

4. Using the Calculator

Tips: Enter your total annual rent in PKR, the applicable slab rate (default is 5%), and the tax threshold (default is 300,000 PKR). The calculator will compute the tax amount.

5. Frequently Asked Questions (FAQ)

Q1: What is the tax threshold for 2023-24?
A: The standard threshold is 300,000 PKR per year, but this may vary based on specific circumstances.

Q2: What is the standard slab rate?
A: The standard rate is 5% for most residential properties, but commercial properties may have different rates.

Q3: Who is responsible for paying this tax?
A: Typically, the tenant deducts the tax at source and deposits it with the government, providing a certificate to the landlord.

Q4: Are there any exemptions?
A: Yes, certain categories like government employees may be exempt or have different thresholds.

Q5: When should the tax be paid?
A: The tax should be deducted each month when rent is paid and deposited with the government by the 15th of the following month.