Income Tax Ordinance 2001 (Sixth Schedule)

Provident Fund Tax Exemption Calculator

Calculate statutory tax-exempt limits on employer PF contributions and credited interest for Recognized Provident Funds under FBR rules.

Employer Contribution Exemption Threshold: -

Taxable Employer Contribution Added to Salary: -

Interest Exemption Cap (16% or 1/3rd Salary): -

Taxable Interest Credited Added to Income: -

Total Annual Amount Added to Taxable Payroll: -

Statutory Rule: Under Part I of the Sixth Schedule to the Income Tax Ordinance 2001, employer contributions to a recognized provident fund are exempt up to 10% of employee basic salary or PKR 150,000, whichever is lower. Interest credited is exempt up to the higher of 16% per annum or one-third of employee basic salary. Amounts exceeding these statutory thresholds are treated as salary income under Section 12.