This guide simplifies the process for Pakistani property owners, outlining tax rates of rental income, allowable deductions for reducing taxes on rental income, and potential savings strategies. This article is specific to click here rental income from immovable properties like land and buildings.

What is Rental Income?

Rental income is the income generated by renting a property to a tenant. It encompasses all payments received from the tenant, including:

Monthly Rent: The recurring payment for occupying the property.

Security Deposits: Deposits held by the landlord as security against potential damage or unpaid rent.

Key Money: An upfront payment sometimes demanded by landlords, though its legality can vary.

Premiums: Upfront payments exceeding the regular rent.