Tax on bank profit calculator
Banks deduct tax from the profit they pay on accounts and deposits. Enter your deposit and rate to see the profit before and after tax.
How it's calculated
- Profit = amount × rate × months ÷ 12.
- Tax on profit paid by a bank on an account or deposit is 20% (section 7B, Division IIIA of the First Schedule).
- The rate applies to persons on the Active Taxpayers List. People not on it have tax deducted at a higher rate.
An example
Rs. 1 million at 10% earns Rs. 100,000 in a year. The bank deducts Rs. 20,000 and you keep Rs. 80,000.
Frequently asked questions
Who deducts the tax?
The bank, when it credits the profit to your account.
What about National Savings profit?
National Savings deducts its own withholding tax. Use the National Savings calculators for those certificates.
Does zakat apply too?
Savings and profit-and-loss sharing accounts at or above the nisab can have zakat deducted on the first day of Ramazan.
Key terms
- Profit on debt
- Profit or interest paid on deposits, accounts and securities.
Up-to-date official data
Data checked against the official source on .
We check the official sources automatically, every day.
See all sources