Al Meezan Investments

Tax Credit

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

Save up to 50% Tax

Tax Savings – Tutorial Video

Invest in Al Meezan Funds- Enjoy Tax Savings & Competitive Returns!

Step 1: Invest in Al Meezan 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 Meezan Tahaffuz Pension Fund2

Step 2: Claim Tax Credit on the investment from your Tax Liability of 2018-2019

How to Avail Tax Credit Facility

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

  1. As a Salaried 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.

Salaried Individual

S.No Annual Taxable Income (ATI) (Rs.) Tax Amount (Rs.) Effective Tax Rate %
Maximum Investment for Tax Credit (Rs.)
Tax Credit (Rs.)
Total Tax Credit (Rs.)
Mutual Fund (20% of ATI) Pension Fund (20% of ATI) Through Mutual Funds (as per sec 62) H = F x E Through Pension Fund (as per sec 63) I = G x E
1 800,000 1,000 0.13% 160,000 160,000 200 200 400
2 2,499,999 65,000 2.60% 500,000 500,000 13,000 13,000 26,000
3 3,999,999 290,000 7.25% 800,000 800,000 58,000 58,000 116,000
4 7,999,999 1,090,000 13.62% 1,600,000 1,600,000 218,000 218,000 436,000
5 10,000,000 1,590,000 15.90% 2,000,000 2,000,000 318,000 318,000 636,000
6 15,000,000 2,840,000 18.93% 2,000,000 3,000,000 378,667 568,000 946,000
7 20,000,000 4,090,000 20.45% 2,000,000 4,000,000 409,000 818,000 1,227,000

 

Other than Salaried Class

S.No Annual Taxable Income (ATI) (Rs.) Tax Amount (Rs.) Effective Tax Rate %
Maximum Investment for Tax Credit (Rs.)
Tax Credit (Rs.)
Total Tax Credit (Rs.)
Mutual Funds (20% of ATI) Pension Fund (20% of ATI) Through Mutual Funds (as per sec 62) H = F x E Through Pension Fund (as per sec 63) I = G x E
1 800,000 1,000 0.13% 160,000 160,000 200 200 400
2 2,399,999 60,000 2.50% 480,000 480,000 12,000 12,000 24,000
3 2,999,999 150,000 5.00% 600,000 600,000 30,000 30,000 60,000
4 3,999,999 350,000 8.75% 800,000 800,000 70,000 70,000 140,000
5 4,999,000 600,000 12.00% 1,000,000 1,000,000 120,000 120,000 240,000
6 10,000,000 2,050,000 20.50% 2,000,000 2,000,000 410,000 410,000 820,000
7 15,000,000 3,500,000 23.33% 2,000,000 3,000,000 466,667 700,000 1,166,667
8 20,000,000 4,950,000 24.75% 2,000,000 4,000,000 495,000 990,000 1,485,000

You can also use the Tax Saving Calculator to know the tax credit amount.

  • • 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 1st and June 30th.
  • • As per Section 63 of Income Tax Ordinance, 2001, an eligible person joining Meezan Tahaffuz Pension Fund at the age of 41 years or above, during the first ten years, shall be allowed additional contribution of 2% per annum for each year of age exceeding 40 years. However; the total contribution shall not exceed 30% of the total taxable income of the preceding year.