What is the Tax Withholding Calculator?

The Tax Withholding Calculator is a financial tool that helps individuals and businesses estimate the amount of tax to be withheld from their income based on a specified withholding tax rate. By entering annual income and the withholding rate, the calculator computes the tax withheld and the resulting net income. This allows users to plan finances, understand their withholding obligations, and manage cash flow effectively.

How to Use:

1. Enter Annual Income (PKR): Input your total income for the year in Pakistani Rupees.
2. Enter Withholding Tax Rate (%): Input the applicable withholding tax rate as a percentage.
3. Click “Calculate”: The tool calculates the tax to be withheld from the income.
4. Review Result: The output shows the annual income, withholding tax rate, tax withheld, and net income after withholding, helping users understand the impact on their earnings.