How to Save Tax?

Invest in NBP Funds before 30th June, 2023

How to Save Tax?

Invest in NBP Funds before 30th June, 2023

    How to save tax?

    When you invest with NBP Funds, not only do you earn better profits than other saving avenues, you can also enhance the overall returns on your savings by availing tax credits.

    Investing in NBP Funds allows you to save up to 20%* of your taxes. To find out the amount in taxes you can save this year to increase your savings, use our Tax Saving Calculator We can teach you how to save tax and avail tax rebates in a few simple steps.


    How to avail Tax Rebate?

    Your Tax Rebate can easily be availed by following a few easy steps

    • Step 1: Call 0800-20002 & set free appointment with our Financial Adviser.
    • Step 2: Invest in NBP Funds up to your tax ceiling before June 30, 2023.
    • Step 3: Claim Tax Credit on your tax liability of 2022-2023 from your investment.
    • Step 4:
      • Salaried Individuals: Share proof of investment with your HR or Finance department to claim your tax credit.
      • Non-Salaried Individuals: Adjust your taxable amount by showing proof of your investments at the time of filing income tax returns.
    Illustration of Tax Credit on Investment in Voluntary Pension Schemes (VPS)
    Annual Taxable Income Tax Amount (as per Tax Law) Required Investment in VPS** Total Tax Credit (Savings) through VPS**
    A B C = A x 20% D = B x 20% E = (D / C) x 100
    SALARIED INDIVIDUALS 2,400,000 165,000 480,000 33,000 6.9%
    3,600,000 405,000 720,000 81,000 11.3%
    6,000,000 1,005,000 1,200,000 201,000 16.8%
    12,000,000 2,955,000 2,400,000 591,000 24.6%
    20,000,000 5,755,000 4,000,000 1,151,000 28.8%
    50,000,000 16,255,000 10,000,000 3,251,000 32.5%
    NON-SALARIED INDIVIDUALS 2,400,000 270,000 480,000 54,000 11.3%
    3,000,000 405,000 600,000 81,000 13.5%
    4,000,000 680,000 800,000 136,000 17.0%
    6,000,000 1,330,000 1,200,000 266,000 22.2%
    20,000,000 6,230,000 4,000,000 1,246,000 31.2%
    50,000,000 16,730,000 10,000,000 3,346,000 33.5%


    *Pension Funds / Voluntary Pension Schemes (VPS)

    Investment amount eligible for tax credit is up to 20% of taxable income. Pre-mature withdrawal from Pension Fund is subject to tax. Lump sum withdrawal in excess of 50% at or after retirement age will be subject to tax.


    Please refer to the Income Tax Ordinance 2001, Section 63, and clause 23 A of Part 1 of Second Schedule to understand the Tax Law fully and the terms and conditions that apply. Tax rates are for FY 2022-23


    All amount mentioned above are in Pak Rupees.


    Disclaimer: All investments in mutual funds and pension funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Documents of the Fund to understand the investment policies and risk involved. NBP Fund Management Limited or any of its sales representative cannot guarantee preservation / protection of capital and / or expected returns / profit on investments. The use of the name and logo of National Bank of Pakistan does not mean that it is responsible for the liabilities / obligations of the Company (NBP Fund Management Limited) or any investment scheme managed by it.