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TAX CREDIT

Your investment in mutual fund and pension schemes entitles you to avail tax credit and enhance the overall return on your savings.

INVEST IN MUTUAL FUNDS- ENJOY TAX SAVINGS & COMPETITIVE RETURNS!

STEP 1: Invest in al mutual funds upto your tax ceiling before june 30

Invest rs. 2,000,000 or 20% of taxable income (whichever is lower) in mutual funds1

invest upto maximum of 20% of taxable income in pension fund2

STEP 2: Claim tax credit on the investment from your tax liability of current fiscal year

How to avail tax credit facility

To claim your tax credit amount you just need to do following:

  1. As aSalaried individual, you can inform your HR or Finance Department about your investments by submitting the account statement to adjust your tax credit amount from the monthly income tax deductions.
  2. As a Self-employed individual you can adjust your tax payable by showing investment in your wealth statement at the time of Income tax return filing.

The benefits shown in the following tables are calculated as an illustration based on maximum investments subject to respective income brackets as defined in ito, 2001.

Taxable Income (PKR) Permissible Investment for Tax Credit (PKR) Mutual Funds Permissible Investment for Tax Credit (PKR) Pension Funds Amount

(PKR)

 Effective Tax Rate % Tax Credit (PKR) Mutual Funds Tax Credit (PKR) Pension Funds Total Tax Credit (PKR)
900,000 180,000 180,000 2,000 0.22% 400 400 800
1,550,000 310,000 310,000 17,500 1.13% 3,500 3,500 7,000
2,450,000 490,000 490,000 65,000 2.65% 13,000 13,000 26,000
4,500,000 900,000 900,000 270,000 6.00% 54,000 54,000 108,000
5,500,000 1,100,000 1,100,000 405,000 7.36% 81,000 81,000 162,000
10,000,000 2,000,000 2,000,000 1,080,000 10.80% 216,000 216,000 432,000
20,000,000 2,000,000 4,000,000 2,580,000 12.90% 258,000 516,000 774,000
    • To avail Tax Rebate, a minimum investment holding period of two years from the date of investment is required.
    • As per Section 62 of Income Tax Ordinance, 2001, an individual investor of open end mutual fund (unit trust schemes)can claim tax credit on investment up to Rs. 2,000,000/- or 20% of individual’s taxable income (whichever is lower) on an investment made in Mutual Funds between July 1stand June 30th.
    • As per Section 63 of Income Tax Ordinance, 2001.