Question

Are different heads of income taxed separately or cumulative tax on income is assessed?

For instance, if a person's salaried income is 5 lac and rental income is 1.5 lac. Would he be liable to pay tax on its total sum as 6.5 lacs or it would be exempted as both separately do not fall under the minimum slab for payment of tax.

Answer 1

Income in Pakistan is taxed on a cumulative basis, not separately by heads.
All heads of income (salary, property, business, etc.) are aggregated to compute total taxable income.
After combining, applicable tax rates and slabs are applied on the total income.
In your example, the person’s total income is Rs. 6.5 lakh, which will be considered for tax calculation.
Hence, tax liability will arise if the total exceeds the minimum taxable limit.

Comments

Okay I get it that the tax will be levied on the aggregated income. I want to ask slab of which head of income would be employed to calculate the rate of tax when there are two or more sources of income?

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They will be taxed at individual/business tax rates as linked in the answer.