Tax Credit on Voluntary Pension Scheme (Meezan Tahaffuz Pension Fund)
Investment Contribution:
Up to age 40, you can invest up to 20% of your annual taxable income in the Voluntary Pension Scheme. At the age of 41 years or above, you shall be allowed additional exemption of 2% per annum for each year of age exceeding 40 years.
However, the total exemption shall not exceed 30% of the total taxable income of the preceding year. (as per section 63 of Income Tax Ordinance).
| Taxable income for the year | Maximum allowable investment as a % of taxable income for tax credit | Maximum Investment allowed for tax credit | Actual amount invested | Eligible amount for tax credit | Applicable tax rate | Tax credit |
|---|---|---|---|---|---|---|
| A | B | C = A*B | D | E = (C or D) whichever is lower | F | G = E * F |
| Rupees | % | Rupees | Rupees | Rupees | % | Rupees |
Tax Credit on Mutual Funds
Investment Contribution:
To avail maximum tax saving in Mutual Funds, you can invest upto Rs. 1,500,000 or 20% of your annual taxable income, whichever is lower (as per section 62 of the Income Tax Ordinance, 2001).
| Taxable income for the year | Maximum allowable investment as a % of taxable income for tax credit | Maximum Investment allowed for tax credit | Actual Investment Amount | Eligible amount for tax credit | Applicable tax rate | Tax credit |
|---|---|---|---|---|---|---|
| A | B | C = A*B | D | E = (C or D) whichever is lower OR upto Rs. 1.5 Mn | F | G = E * F |
| Rupees | % | Rupees | Rupees | Rupees | % | Rupees |
Disclaimer: Participants should consult their tax / financial advisors to assess their liability with respect to taxation from investment in the pension fund.