Save up to 40% 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:
- 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.
- 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 | 1,200,000 | 30,000 | 2.50% | 240,000 | 240,000 | 6,0000 | 6,000 | 12,000 |
| 2 | 1,800,000 | 90,000 | 5.00% | 360,000 | 360,000 | 18,000 | 18,000 | 36,000 |
| 3 | 2,500,000 | 195,000 | 7.80% | 500,000 | 500,000 | 39,00 | 39,00 | 78,000 |
| 4 | 3,500,000 | 370,000 | 10.57% | 700,000 | 700,000 | 74,000 | 74,000 | 148,000 |
| 5 | 5,000,000 | 670,000 | 13.40% | 1,000,000 | 1,000,000 | 134,000 | 134,000 | 268,000 |
| 6 | 8,000,000 | 1,345,000 | 16.81% | 1,600,000 | 1,600,000 | 269,000 | 269,000 | 538,000 |
| 7 | 12,000,000 | 2,345,000 | 19.54% | 2,000,000 | 2,400,000 | 390,833 | 469,000 | 859,833 |
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 | 600,000 | 10,000 | 1.67% | 120,000 | 120,000 | 2,000 | 2,000 | 4,000 |
| 2 | 1,200,000 | 70,000 | 5.83% | 240,000 | 240,000 | 14,000 | 14,000 | 28,000 |
| 3 | 2,400,000 | 250,000 | 10.42% | 480,000 | 480,000 | 50,000 | 50,000 | 100,000 |
| 4 | 3,000,000 | 370,000 | 12.33% | 600,000 | 600,000 | 74,000 | 74,000 | 148,000 |
| 5 | 4,000,000 | 620,000 | 15.50% | 800,000 | 800,000 | 124,000 | 124,000 | 248,000 |
| 6 | 6,000,000 | 1,220,000 | 20.33% | 1,200,000 | 1,200,000 | 244,000 | 244,000 | 488,000 |
| 7 | 10,000,000 | 2,620,000 | 26.20% | 2,000,000 | 2,000,000 | 524,000 | 524,000 | 1,048,000 |
| 8 | 20,000,000 | 6,120,000 | 30.60% | 2,000,000 | 4,000,000 | 612,000 | 1,224,000 | 1,836,000 |
You can also use the Tax Saving Calculator to know the tax credit amount.
- 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 the income tax ordinance 2001, an eligible person joining Meezan Tahaffuz Pension Fund can avail tax credit up to 20% of the (eligible) person’s taxable income for the relevant tax year. In view of individual nature of tax consequences, each investor is advised to consult with his/her tax advisor with respect to specific tax consequences of investing in the Fund. To avail tax rebate on mutual funds, minimum investing holding period of two years from the date of investment is required, failing which taxes shall be applicable as per the tax laws. Tax credit can only be once during these two years and not every year.