Tax Credit - Al Meezan Investment Management Limited
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 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.

  • 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.