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Tax Bachao

INTRODUCTION

As per section 62 and 63 of the income tax ordinance (2001) of the Income Tax Ordinance investors can significantly reduce their taxes by investing in mutual funds and voluntary pension schemes.

By investing in our products you not only have the capacity to earn healthy returns on your investment but also save your taxes.

SAVE TAX AND BUILD WEALTH

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SAVE UPTO 40% 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 “021-11-11-ISAVE (47283)” 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

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:

  • To avail Tax Rebate, a minimum investment holding period of two years in case of mutual funds from the date of initial 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 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 mutual funds 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 in this literature is based on interpretation of MCB-Arif Habib Savings & 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.