Tax Credit 15
Content
Reduce Taxes
Enhance Income
AM2+
by Investing in NAFA Mutual and Pension Funds.
by PACRA
High Investment
Management Standards
NAFA offers the opportunity to its valued investors to avail tax savings and earn competitive returns at the same time.
Now reducing your Income Tax Liability for the financial year is as simple as A-B-C ! by following these two steps:A. Invest in NAFA Funds up to your tax ceiling before June 30, 2015. Following tables shows tax ceiling for various taxable income
brackets for salaried individuals and non-salaried individuals.
B. Claim Tax Credit on the investment from your Tax Liability of 2014-2015.
Illustration of Tax Savings on Investment in Mutual Funds
and Voluntary Pension Schemes (VPS) 1
NONSALARIED
INDIVIDUALS
Annual
Taxable
Income
50,000
100,000
200,000
500,000
1,000,000
B=
A X 12
600,000
1,200,000
2,400,000
6,000,000
12,000,000
SALARIED
INDIVIDUALS
Monthly
Taxable
Income
50,000
100,000
200,000
500,000
1,000,000
600,000
1,200,000
2,400,000
6,000,000
12,000,000
A
Required
Tax
Investment
Tax Amount
(savings)
(as per Tax in NAFA in Mutual
Mutual
1
Law)
Funds
Funds 2
D=
C x Tax
C
Rate
20,000
120,000
4,000
102,500
240,000 20,500
327,500
480,000 65,500
1,322,500 1,000,000 220,417
3,422,500 1,000,000 285,208
10,000
62,500
245,000
1,150,000
2,925,000
Tax
Required
Total
(savings)
Investment
Investment
in VPS in
in Mutual
up to 50%3
3
VPS
Funds + VPS
E
300,000
600,000
1,200,000
3,000,000
6,000,000
F=
E X Tax rate
10,000
51,250
163,750
661,250
1,711,250
120,000
2,000
300,000
5,000
240,000 12,500
600,000
31,250
480,000 49,000 1,200,000
122,500
1,000,000 191,667 3,000,000
575,000
1,000,000 243,750 6,000,000 1,462,500
G=
C+E
420,000
840,000
1,680,000
4,000,000
7,000,000
Total Tax
(savings) in
Mutual Funds
and VPS
Rupees
%
H=
I=
D+F
H/G
14,000 3.3%
71,750 8.5%
229,250 13.6%
881,667 22.0%
1,996,458 28.5%
420,000
7,000
840,000
43,750
1,680,000 171,500
4,000,000 766,667
7,000,000 1,706,250
1.7%
5.2%
10.2%
19.2%
24.4%
Amount in PKR
Notes:
1.
Please refer to the Income Tax Ordinance 2001, section 62 and 63 to understand the Tax Law fully and the terms and conditions that apply. Tax reates are for FY 2014-15. Tax credit is available on
income from salary and income from business. Income subject to final tax is not entitled for tax credit.
2.
Investment amount eligible for Tax credit is up to 20% taxable income or Rs. 1,000,000/- whichever is lower. Holding period of investment is two years from the date of investment.
3.
Voluntary Pension Schemes (VPS) / Pension Funds
Investment amount eligible for tax credit is up to 20% of taxable income. For persons age 41 and above, an additional 2% per year investment for each year exceeding age 40 is eligible for tax
credit subject to a cap of 50% of the preceding year’s taxable income.
4.
Taxes apply. Tax rate on Dividend for individuals is 10%, CGT rate is 12.5% for up to 1 year holding period , 10% for 1-2 years holding period and 0% for more than 2 years holding period.
Mutual Funds
AM2+
by PACRA
High Investment
Management Standards
1
2
3
1
3
%
I=
H=
D+F
H/G
3.3%
14,000
8.5%
71,750
13.6% 229,250
22.0% 881,667
28.5% 1,996,458
G=
C+E
420,000
840,000
1,680,000
4,000,000
7,000,000
F=
E X Tax rate
10,000
51,250
163,750
661,250
1,711,250
1.7%
7,000
5.2%
43,750
10.2% 171,500
19.2% 766,667
24.4% 1,706,250
420,000
840,000
1,680,000
4,000,000
7,000,000
5,000
31,250
122,500
575,000
1,462,500
E
300,000
600,000
1,200,000
3,000,000
6,000,000
D=
C
C x Tax
4,000 120,000
20,500
240,000
65,500
480,000
220,417 1,000,000
285,208 1,000,000
300,000
2,000 120,000
600,000 12,500 240,000
1,200,000 49,000 480,000
3,000,000 191,667 1,000,000
6,000,000 243,750 1,000,000
20,000
102,500
327,500
1,322,500
3,422,500
B=
A
A X 12
600,000
50,000
1,200,000 100,000
2,400,000 200,000
6,000,000 500,000
12,000,000 1,000,000
10,000
600,000
50,000
62,500
1,200,000 100,000
245,000
2,400,000 200,000
1,150,000
6,000,000 500,000
2,925,000 12,000,000 1,000,000
-1
-2
-3
-4
Enhance Income
AM2+
by Investing in NAFA Mutual and Pension Funds.
by PACRA
High Investment
Management Standards
NAFA offers the opportunity to its valued investors to avail tax savings and earn competitive returns at the same time.
Now reducing your Income Tax Liability for the financial year is as simple as A-B-C ! by following these two steps:A. Invest in NAFA Funds up to your tax ceiling before June 30, 2015. Following tables shows tax ceiling for various taxable income
brackets for salaried individuals and non-salaried individuals.
B. Claim Tax Credit on the investment from your Tax Liability of 2014-2015.
Illustration of Tax Savings on Investment in Mutual Funds
and Voluntary Pension Schemes (VPS) 1
NONSALARIED
INDIVIDUALS
Annual
Taxable
Income
50,000
100,000
200,000
500,000
1,000,000
B=
A X 12
600,000
1,200,000
2,400,000
6,000,000
12,000,000
SALARIED
INDIVIDUALS
Monthly
Taxable
Income
50,000
100,000
200,000
500,000
1,000,000
600,000
1,200,000
2,400,000
6,000,000
12,000,000
A
Required
Tax
Investment
Tax Amount
(savings)
(as per Tax in NAFA in Mutual
Mutual
1
Law)
Funds
Funds 2
D=
C x Tax
C
Rate
20,000
120,000
4,000
102,500
240,000 20,500
327,500
480,000 65,500
1,322,500 1,000,000 220,417
3,422,500 1,000,000 285,208
10,000
62,500
245,000
1,150,000
2,925,000
Tax
Required
Total
(savings)
Investment
Investment
in VPS in
in Mutual
up to 50%3
3
VPS
Funds + VPS
E
300,000
600,000
1,200,000
3,000,000
6,000,000
F=
E X Tax rate
10,000
51,250
163,750
661,250
1,711,250
120,000
2,000
300,000
5,000
240,000 12,500
600,000
31,250
480,000 49,000 1,200,000
122,500
1,000,000 191,667 3,000,000
575,000
1,000,000 243,750 6,000,000 1,462,500
G=
C+E
420,000
840,000
1,680,000
4,000,000
7,000,000
Total Tax
(savings) in
Mutual Funds
and VPS
Rupees
%
H=
I=
D+F
H/G
14,000 3.3%
71,750 8.5%
229,250 13.6%
881,667 22.0%
1,996,458 28.5%
420,000
7,000
840,000
43,750
1,680,000 171,500
4,000,000 766,667
7,000,000 1,706,250
1.7%
5.2%
10.2%
19.2%
24.4%
Amount in PKR
Notes:
1.
Please refer to the Income Tax Ordinance 2001, section 62 and 63 to understand the Tax Law fully and the terms and conditions that apply. Tax reates are for FY 2014-15. Tax credit is available on
income from salary and income from business. Income subject to final tax is not entitled for tax credit.
2.
Investment amount eligible for Tax credit is up to 20% taxable income or Rs. 1,000,000/- whichever is lower. Holding period of investment is two years from the date of investment.
3.
Voluntary Pension Schemes (VPS) / Pension Funds
Investment amount eligible for tax credit is up to 20% of taxable income. For persons age 41 and above, an additional 2% per year investment for each year exceeding age 40 is eligible for tax
credit subject to a cap of 50% of the preceding year’s taxable income.
4.
Taxes apply. Tax rate on Dividend for individuals is 10%, CGT rate is 12.5% for up to 1 year holding period , 10% for 1-2 years holding period and 0% for more than 2 years holding period.
Mutual Funds
AM2+
by PACRA
High Investment
Management Standards
1
2
3
1
3
%
I=
H=
D+F
H/G
3.3%
14,000
8.5%
71,750
13.6% 229,250
22.0% 881,667
28.5% 1,996,458
G=
C+E
420,000
840,000
1,680,000
4,000,000
7,000,000
F=
E X Tax rate
10,000
51,250
163,750
661,250
1,711,250
1.7%
7,000
5.2%
43,750
10.2% 171,500
19.2% 766,667
24.4% 1,706,250
420,000
840,000
1,680,000
4,000,000
7,000,000
5,000
31,250
122,500
575,000
1,462,500
E
300,000
600,000
1,200,000
3,000,000
6,000,000
D=
C
C x Tax
4,000 120,000
20,500
240,000
65,500
480,000
220,417 1,000,000
285,208 1,000,000
300,000
2,000 120,000
600,000 12,500 240,000
1,200,000 49,000 480,000
3,000,000 191,667 1,000,000
6,000,000 243,750 1,000,000
20,000
102,500
327,500
1,322,500
3,422,500
B=
A
A X 12
600,000
50,000
1,200,000 100,000
2,400,000 200,000
6,000,000 500,000
12,000,000 1,000,000
10,000
600,000
50,000
62,500
1,200,000 100,000
245,000
2,400,000 200,000
1,150,000
6,000,000 500,000
2,925,000 12,000,000 1,000,000
-1
-2
-3
-4
