Pakistan Rent Tax Calculator

Calculate Advance Tax on Rental Income - FBR Withholding Tax Calculator

Rent Tax Information
Rent Tax Rates (2024-25)
Up to 300,000 0.0
300,001 - 600,000 5.0
600,001 - 1,000,000 10.0
1,000,001 - 2,000,000 15.0
Above 2,000,000 20.0
* Rates for individuals receiving rent
Advance tax on rent is deductible at source by the tenant.
Rent Tax Calculation - 2024-25
🏠 Rental Income Details
👤 Taxpayer Information
📊 Deductions & Adjustments
Standard: 20% of annual rent
Insurance, property tax, etc.
💰 Advance Tax Calculation
Important Rent Tax Rules
  • Advance tax on rent is deductible by the tenant at specified rates.
  • Standard 20% repair allowance is available for residential properties.
  • Tax rates vary for individuals, companies, and non-residents.
  • Tenants must deduct tax monthly and deposit with FBR by 15th of next month.

Who Deducts Rent Tax?

The tenant is responsible for deducting advance tax on rent payments and depositing it with FBR under section 155.

Repair Allowance

20% of annual rent is allowed as standard repair and maintenance allowance for residential properties.

Tax Rates

Rates vary from 4.5% to 20% based on annual rent amount and taxpayer type (individual/company).

Filing Requirements

Tenants must file monthly withholding tax statements and issue certificates to landlords.

Rent Tax Frequently Asked Questions

1. Who is responsible for deducting advance tax on rent?

The tenant (individual or company) paying the rent is responsible for deducting advance tax under section 155 of the Income Tax Ordinance.

2. What is the repair and maintenance allowance?

Landlords can claim 20% of annual rent as standard repair allowance for residential properties without providing actual expense proofs.

3. When should the deducted tax be deposited with FBR?

The deducted tax must be deposited by the 15th of the following month in which the rent was paid.

4. Are there different tax rates for individuals and companies?

Yes, companies and AOPs generally have higher tax rates compared to individual taxpayers.

5. What if the tenant fails to deduct tax?

The tenant becomes personally liable for the tax amount and may face penalties and additional taxes.

6. Can I claim tax credit for advance tax deducted?

Yes, the advance tax deducted can be claimed as credit against your final tax liability when filing annual tax returns.

7. Is there any exemption limit for rent tax?

For individuals, no tax is deductible if monthly rent is less than Rs. 25,000 (annual rent less than Rs. 300,000).

8. What documents should the tenant provide?

The tenant must provide a withholding tax certificate to the landlord showing the tax deducted and deposited.