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.

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

Step 1: Invest in Al Meezan Funds upto your tax ceiling before June 30, 2017

  • Invest Rs. 1,500,000 or 20% of taxable income (whichever is lower) in Mutual Funds1
  • Invest upto maximum of 20% of taxable income in Meezan Tahaffuz Pension Fund 2

Step 2: Claim Tax Credit on the investment from your Tax Liability of 2016-2017

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 Individuals

Taxable Income (PKR) Permissible Investment for Tax Credit (PKR) Mutual Funds Permissible Investment for Tax Credit (PKR) Pension Funds Tax Amount (PKR) Effective Tax Rate % Tax Credit (PKR) Mutual Funds Tax Credit (PKR) Pension Funds Total Tax Credit (PKR)
900,000 180,000 180,000 29,500 3.28% 5,900 5,900 11,800
1,550,000 310,000 310,000 99,500 6.42% 19,900 19,900 39,800
2,450,000 490,000 490,000 250,750 10.23% 50,150 50,150 100,300
4,500,000 900,000 900,000 734,500 16.32% 146,900 146,900 293,800
8,000,000 1,500,000 1,600,000 1,722,000 21.53% 322,875 344,400 667,275
10,000,000 1,500,000 2,000,000 2,322,000 23.22% 348,300 464,400 812,700
20,000,000 1,500,000 4,000,000  5,322,000 26.61% 399,150 1,064,400 1,463,550

Self- Employed Individuals

Taxable Income (PKR) Permissible Investment for Tax Credit (PKR) Mutual Funds Permissible Investment for Tax Credit (PKR) Pension Funds Tax Amount (PKR) Effective Tax Rate % Tax Credit (PKR) Mutual Funds Tax Credit (PKR) Pension Funds Total Tax Credit (PKR)
900,000 180,000 180,000 54,500 6.06% 10,900 10,900 21,800
1,500,000 300,000 300,000 144,500 9.63% 28,900 28,900 57,800
2,400,000 480,000 480,000 324,500 13.52% 64,900 64,900 129,800
4,500,000 900,000 900,000 869,500 19.32% 173,900 173,900 347,800
8,000,000 1,500,000 1,600,000 2,019,500 25.24% 378,656 403,900 782,556
10,000,000 1,500,000 2,000,000 2,719,500 27.20% 407,925 543,900 951,825
20,000,000 1,500,000 4,000,000 6,219,500 31.10% 466,463 1,243,900 1,710,363

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. 1,500,000/- 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.