Tax Bachao 2

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Tax Bachao 2

SAVE TAX AND BUILD WEALTH

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SAVE UPTO 20% TAXES

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TAX SHIELD

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MORE DISPOSABLE INCOME

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CAPITAL APPRECIATION

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POSITIVE ECONOMIC GROWTH

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MANAGE YOUR FINANCES EFFICIENTLY

TAX REBATE TABLE

FIND OUT HOW

STEP 1

CALL US AT “0800-62224” OR SMS TAX to 8622 TO SPEAK TO ONE OF OUR TAX ADVISORS

OR

YOU CAN ALSO LOGIN TO iSAVE.MCBAH.COM AND CREATE AN ACCOUNT ON iSAVE IN A FEW MINUTES.

STEP 2

For salaried individuals:
Inform your Human Resources (HR) or Finance Department about your investments and ask them to adjust your tax credit amount from the monthly income tax deductions made from your salary

For self-employed individuals or non-salaried individuals:
When filing your own personal income tax returns, you can adjust your tax payable and enclose a copy of your statement of investment along with your documents when you file your returns

FAQS

What is Tax Credit / Rebate?

Tax credit is tax saving that you can get on your income tax for the year if you invest in pension schemes. This facility can be availed by both salaried and self-employed individuals in accordance with the Income Tax Ordinance, 2001.

The amount of tax credit you are entitled to will be adjusted from your payable annual income tax thus giving you an overall tax saving.

Investment in Pension Schemes:

For example, if you are a salaried individual and your annual taxable income for the year is Rs.4,650,000, your average tax rate will be 14.35%. You can avail a maximum tax credit of Rs.133,500 by investing Rs.930,000 in pension scheme.

The maximum tax benefit that an individual can get is up to 20% of his or her annual taxable income times his or her tax rate.

The amount of tax credit that you can get on an investment in pension schemes is dependent on:

a) The amount of investment you make.
b) Your annual taxable income.

Is there any condition on getting tax credit?

In pension schemes, you need to hold your investment for at least one year to be eligible to claim tax credit. However, if you withdraw any amount from your investment in a pension scheme before your selected retirement date then a tax penalty will be charged, which will be equivalent to your average tax rate of last 3 years.

How long do I have to hold my savings in VPS to claim the tax incentive?

To avail Tax Rebate on Pension Funds, you need to hold your investment for at least one year to be eligible to claim tax credit.

How do I claim the tax savings?

Simple, make your investment, and then present your statement of account to your HR / Payroll dept. They will make the necessary adjustments to your tax deductions.

How much tax credit / rebate can I get?

The amount of tax credit you can get is dependent on your income tax rate and the amount you wish to invest. Use our Tax Savings Calculator to find out how much tax credit you can get.

How can I claim my tax credit / rebate amount?

For salaried individuals:
Inform your Human Resources (HR) or Finance Department about your investments and ask them to adjust your tax credit amount from the monthly income tax deductions made from your salary

For self-employed individuals or non-salaried individuals:
When filing your own personal income tax returns, you can adjust your tax payable and enclose a copy of your statement of investment along with your documents when you file your returns

Please note:

  • To avail Tax Rebate on Pension Funds, you need to hold your investment for at least one year to be eligible to claim tax credit.
  • As per Section 63 of Income Tax Ordinance, 2001, an individual investor of pension fund (unit trust schemes) can claim tax credit on investment up to 20% of individual’s taxable income on an investment made in Pension Funds between July 1st and June 30th.
  • The results shown by the calculator are estimates based on individuals drawing income only from salary for a whole year. Tax liabilities may change based on a number of circumstances and we advise that you speak to your tax advisor / financial professional for exact savings amounts based on your circumstances.

Disclaimer: All investments in voluntary pension schemes are subject to market risks. Past performance is not necessarily indicative of the future results. Please read the Offering Document to understand the investment policies and the risks involved. The tax credit information provided in this literature is based on interpretation of MCB Funds & Investments Limited. Investors are advised to seek independent professional advice in this regard. Capital gain tax and withholding tax on dividend and bonus units will be charged according to Income Tax Laws, if applicable. Withdrawal from Voluntary Pension Schemes before retirement shall have tax implications.