Question 1

What is the income tax threshold in Pakistan for 2026-27?

Accepted Answer

Income up to Rs 600,000 per year remains fully exempt. Finance Bill 2026 applies progressive rates: 1% up to Rs 1.2m, 11% up to Rs 2.2m, 20% up to Rs 3.2m, 25% up to Rs 4.1m, 29% up to Rs 5.6m, 32% up to Rs 7m, and 35% above Rs 7m. The 9% surcharge on income above Rs 10 million has been abolished.

Question 2

What is the Nisab for Zakat in Pakistan 2026?

Accepted Answer

Nisab can be calculated using gold (87.48g / 7.5 tola) or silver (612.36g / 52.5 tola). Silver Nisab is recommended as it is lower and more inclusive — approximately Rs 195,000-200,000 at 2026 rates. Once net Zakatable assets reach Nisab and one lunar year has passed, 2.5% Zakat is due.

Question 3

What changed in Budget 2026-27 for salaried people?

Accepted Answer

Finance Bill 2026 brought major salary tax relief: rates cut for all brackets above Rs 2.2m, a new 32% bracket added for Rs 5.6m-7m, and the 9% surcharge on high earners abolished. Property WHT for buyers also dropped from 2.5% to 1.25%.

Question 4

Do I need to file an income tax return in Pakistan?

Accepted Answer

Yes — if your annual income exceeds Rs 600,000, you must file a return on the FBR IRIS portal. The deadline is September 30, 2026. Being a filer on the Active Taxpayer List gives you significantly lower withholding tax rates on banking, property, dividends and dozens of other transactions.

Question 5

How is Zakat calculated on gold jewellery?

Accepted Answer

If your gold (combined with other Zakatable assets) reaches Nisab (87.48g of pure gold equivalent) and one lunar year has passed, 2.5% of the total market value is due as Zakat. Zakat applies across all purities (18K-24K) and is calculated on the current Sarafa market rate.

Question 6

Is bank profit (interest) halal in Pakistan?

Accepted Answer

Conventional bank interest (Sood) is generally considered impermissible in Islam. Many Pakistani banks now offer Sharia-compliant Mudarabah profit-sharing accounts. Meezan Bank, Bank Islami, and Dubai Islamic Bank operate on Islamic finance principles. Consult a qualified Islamic scholar for your specific situation.