Tax Bachao

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Tax Bachao

Shelter Yourself
From The Burden of Taxes

CALCULATE NOW

INVEST BEFORE 30TH JUNE

Shelter Yourself
From The Burden of Taxes

CALCULATE NOW

INVEST BEFORE 30TH JUNE

INTRODUCTION

Don’t you want to save more of your hard earned money from taxes? It is simple!
When you save through Mutual Funds or Voluntary Pension Schemes (VPS) with MCB-Arif Habib Savings, you get twin benefits of earning returns and reducing your taxes. Therefore, say goodbye to taxes and give more power to your savings.

CALCULATE HOW MUCH YOU CAN SAVE ON YOUR TAXES!



TAX REBATE TABLE

HOW CAN I DO THIS?

STEP 1

CALL US AT “021-11-11-ISAVE (47283)” OR SMS TAX to 8622 TO SPEAK TO ONE OF OUR TAX ADVISORS

OR

YOU CAN ALSO VISIT 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

Tax credit is tax saving that you can get on your income tax for the year if you invest in mutual funds, or 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 Mutual Funds:

For example, if you are a salaried individual and your annual taxable income for the year is Rs.4,000,000; your average tax rate will be 12.90%. If you invest, let’s say Rs. 800,000 in a mutual fund scheme, you will be entitled to a tax credit of Rs. 94,000.

Investment in Pension Schemes:

For example, if you are a salaried individual in your late 30’s and your annual taxable income for the year is Rs.4,650,000; your average tax rate will be 12.90%. If you invest, let’s say Rs.930,000 in a pension scheme, you will be entitled to a tax credit of Rs.120,000 approx.

The maximum tax benefit that an individual can get is up to 40% 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 mutual funds and pension schemes is dependent on:

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

In the case of mutual funds, the only condition is that you need to hold your investment for a period of at least two years (as per the Income Tax Ordinance).
In case of 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.

To avail Tax Rebate, a minimum investment holding period of two years from the date of investment is required.

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.

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.

Yes, mutual funds and pension schemes are two different types of investment schemes, you can avail a separate tax credit / rebate on each of the two.

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:

Note-1: According to Section 62 of the Income Tax Ordinance, 2001, a resident individual can claim tax credit at average rate of tax on investments made in open-end schemes during the tax year up to two (2) million rupees or twenty per cent (20%) of his/her taxable income for that tax year, whichever is lower. Minimum holding period for such investment is twenty four (24) months from the date of investment.

Note-2: According to Section 63 of the Income Tax Ordinance, 2001, an individual Pakistani who holds a valid CNIC/NICOP can claim tax credit at average rate of tax on investments made in voluntary pension schemes during the tax year up to twenty per cent (20%) of his/her taxable income for that tax year.

Tax credit amounts computed above are estimates based on individual drawing income from salary for a whole tax year. Tax liabilities may change based on a number of circumstances and we advise that you should consult with your tax advisor/ financial consultant for exact tax credit amounts based on your particular circumstances.

Disclaimer: All investments in mutual funds (collective investment schemes and 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 on this webpage is based on MCB-AH’s interpretation of the current income tax laws. Investors are advised to seek independent professional advice so as to determine the taxability arising from their investments in units of the collective investments schemes and/or voluntary pension schemes. MCB-AH does not assume any responsibility or liability in this behalf. Capital gain tax and withholding tax on dividend and bonus units will be charged according to current income tax laws, if applicable. Withdrawal from voluntary pension schemes before retirement shall have tax implications.