| 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 = G / F | ||||||||
| 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 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 2021-22 Amount All amount mentioned above are in Pak Rupees. |
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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 Saving Calculator We can teach you how to save tax and avail tax rebates in a few simple steps.
Your Tax Rebate can easily be availed by following a few easy steps
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.