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How to Save Tax?

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 40%* of your taxes. To find out the amount in taxes you can save this year to increase your savings, use our Tax Rebate Calculator

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, 2020.
  • Step 3: Claim Tax Credit on your tax liability of 2019-2020 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 Mutual Funds and Pension Funds
  Annual Taxable Income Tax Amount (as per Tax Law) Required Investment in Mutual Funds Tax (savings) in Mutual Funds Required Investment in Pension Funds Tax (savings) Pension Funds – up to 20% Total Investment in Mutual Funds + Pension Funds Total Tax Credit (savings) in Mutual Funds and Pension Funds
   A   B C = B x Tax Rate D = A x 20% E = D x Tax Rate F = B + D G = C + E H = F / G
SALARIED INDIVIDUALS 1,200,000 30,000 240,000 6,000 240,000 6,000 480,000 12,000 2.5%
1,800,000 90,000 360,000 18,000 360,000 18,000 720,000 36,000 5.0%
2,500,000 195,000 500,000 39,000 500,000 39,000 1,000,000 78,000 7.8%
3,500,000 370,000 700,000 74,000 700,000 74,000 1,400,000 148,000 10.6%
5,000,000 670,000 1,000,000 134,000 1,000,000 134,000 2,000,000 268,000 13.4%
8,000,000 1,345,000 1,600,000 269,000 1,600,000 269,000 3,200,000 538,000 16.8%
12,000,000 2,345,000 2,000,000 390,833 2,400,000 469,000 4,400,000 859,833 19.5%
30,000,000 7,295,000 2,000,000 486,333 6,000,000 1,459,000 8,000,000 1,945,333 24.3%
50,000,000 13,295,000 2,000,000 531,800 10,000,000 2,659,000
12,000,000 3,190,800 26.6%
 
NON-SALARIED INDIVIDUALS 600,000 10,000 120,000 2,000 120,000 2,000 240,000 4,000 1.7%
1,200,000 70,000 240,000 14,000 240,000 14,000 480,000 28,000 5.8%
2,400,000 250,000 480,000 50,000 480,000 50,000 960,000 100,000 10.4%
3,000,000 370,000 600,000 74,000 600,000 74,000 1,200,000 148,000 12.3%
4,000,000 620,000 800,000 124,000 800,000 124,000 1,600,000 248,000 15.5%
10,000,000 2,620,000 2,000,000 524,000 2,000,000 524,000 4,000,000 1,048,000 26.2%
30,000,000 9,620,000 2,000,000 641,333 6,000,000 1,924,000 8,000,000 2,565,333 32.1%
50,000,000 16,620,000 2,000,000 664,800 10,000,000 3,324,000 12,000,000 3,988,800 33.2%

Notes:

*Mutual Funds

Investment amount eligible for Tax credit is up to 20% taxable income or Rs. 2,000,000/- whichever is lower. Holding period of investment of atleast 24 months from the date of investment is required to avail tax credit.

*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.

Taxation

Please refer to the Income Tax Ordinance 2001, Section 62, 63, and 156 B to understand the Tax Law fully and the terms and conditions that apply. Tax rates are for FY 2019-20

Amount

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 Funds to understand the investment policies and risk involved.