CalcuPK

Tax-Deductible Investment Planner Pakistan

Pakistan-focusedFormula explainedRates reviewedVerify before filing
Tax Year 2026Rates reviewed: 30 Jun 2025Verify with FBR

Estimate the income tax you could save in Pakistan through deductible pension contributions and approved investments — with clear warnings about changing eligibility rules.

Last updated: 1 July 2025

The life-insurance / new-shares tax credit is currently treated as not available in our config (it was withdrawn for many taxpayers). Only the pension allowance is applied. Verify your current eligibility with FBR.
PKR
PKR

Deductible up to 20.0% of taxable income (assumption).

PKR

Only counted if the credit is available in config.

Tax saving

Estimated tax savedPKR 69,000
Tax before investmentPKR 300,000
Tax after investmentPKR 231,000
Eligible pension allowancePKR 300,000
Effective saving23.0%
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Tax before vs after investment

Tax beforePKR 300,000
Tax afterPKR 231,000

Need help understanding this?

Tax rules can vary by situation. Consider speaking with a qualified Pakistan tax professional before making filing or investment decisions.

Contact usTalk to a tax professional

How to use this calculator

  1. 1Enter your annual taxable income.
  2. 2Add your planned pension fund contribution.
  3. 3Add any life-insurance / approved investment (applied only if available).
  4. 4See your estimated tax saving.

Formula & how it works

  • Pension reduces taxable income (capped at 20.0% of income).
  • Tax saved = tax(before) − tax(after deduction and any credit).
  • Any available insurance/shares credit is applied at your average tax rate.

Tax-Deductible Investment Planner Pakistan

Investing for retirement can also lower your tax bill — when the rules allow it. This planner estimates how much income tax you could save by contributing to an approved pension fund, while being honest that Pakistan's tax-credit rules have changed often and some benefits were withdrawn.

We deliberately do not invent benefits. The config file makes it easy to switch credits on or off as the law changes. Always confirm your eligibility with the FBR or a professional before investing for tax reasons. To see your starting tax, use the FBR Income Tax Calculator.

Frequently asked questions

Historically, contributions to approved pension funds (deductible allowance) and certain life-insurance/new-share investments (tax credit) reduced tax. Several of these were changed or withdrawn in recent Finance Acts, so eligibility must be verified with FBR.

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