Tax Credit is a kind of concession by reduction in tax liability offered by the Government to Tax Payers with the objective to promote disciplined savings & investment culture.
The tax benefit is in addition to the return generated from the investments in our Funds.
Your investment in ABL Funds’ entitles you to avail tax benefits and maximize the overall return on your investments.
Step 1: Invest in ABL Pension Funds up to your tax ceiling between July - June
Step 2: Claim Tax Credit on your investment for FY 2023 - 2024
The amount of tax credit you can get is dependent on:
To claim your tax credit amount you just need to do following:
The benefits shown in the following table are calculated as an illustration based on maximum Investments subject to respective income brackets as defined in ITO, 2001.
| S.# | Annual Taxable Income (ATI) | Tax Amount (as per Tax Law) | Effective Tax Rate % | Permissible Investment for Tax Credit (PKR) Pension Fund (20% of ATI). |
Tax Credit (PKR) Through Pension Fund (as per sec 63) |
|---|---|---|---|---|---|
| 1 | 650,000 | 1,250 | 0.19% | 130,000 | 250 |
| 2 | 1,000,000 | 10,000 | 1.00% | 200,000 | 2,000 |
| 3 | 1,200,000 | 15,000 | 1.25% | 240,000 | 3,000 |
| 4 | 1,500,000 | 52,500 | 3.50% | 300,000 | 10,500 |
| 5 | 2,000,000 | 115,000 | 5.75% | 400,000 | 23,000 |
| 6 | 2,500,000 | 187,500 | 7.50% | 500,000 | 37,500 |
| 7 | 3,000,000 | 300,000 | 10.00% | 600,000 | 60,000 |
| 8 | 3,500,000 | 412,500 | 11.79% | 700,000 | 82,500 |
| 9 | 4,000,000 | 545,000 | 13.63% | 800,000 | 109,000 |
| 10 | 5,000,000 | 820,000 | 16.40% | 1,000,000 | 164,000 |
| 11 | 8,000,000 | 1,795,000 | 22.44% | 1,600,000 | 359,000 |
| 12 | 10,000,000 | 2,495,000 | 24.95% | 2,000,000 | 499,000 |
| 13 | 15,000,000 | 4,245,000 | 28.30% | 3,000,000 | 849,000 |
| S.# | Annual Taxable Income (ATI) | Tax Amount (as per Tax Law) | Effective Tax Rate % | ||
|---|---|---|---|---|---|
| Permissible Investment for Tax Credit (PKR) Pension Fund (20% of ATI) |
Tax Credit (PKR) Through Pension Fund (as per sec 63) |
||||
| 1 | 650,000 | 3,750 | 0.58% | 130,000 | 750 |
| 2 | 1,000,000 | 45,000 | 4.50% | 200,000 | 9,000 |
| 3 | 1,500,000 | 135,000 | 9.00% | 300,000 | 27,000 |
| 4 | 2,000,000 | 235,000 | 11.75% | 400,000 | 47,000 |
| 5 | 2,500,000 | 340,000 | 13.60% | 500,000 | 68,000 |
| 6 | 3,000,000 | 465,000 | 15.50% | 600,000 | 93,000 |
| 7 | 4,000,000 | 765,000 | 19.13% | 800,000 | 153,000 |
| 8 | 5,000,000 | 1,115,000 | 22.30% | 1,000,000 | 223,000 |
| 9 | 8,000,000 | 2,165,000 | 27.06% | 1,600,000 | 433,000 |
| 10 | 10,000,000 | 2,865,000 | 28.65% | 2,000,000 | 573,000 |
| 11 | 15,000,000 | 4,615,000 | 30.77% | 3,000,000 | 923,000 |
| 12 | 20,000,000 | 6,365,000 | 31.83% | 4,000,000 | 1,273,000 |
| 13 | 30,000,000 | 9,865,000 | 32.88% | 6,000,000 | 1,973,000 |
1As per Section 63 of Income Tax Ordinance, 2001, an individual investor of pension fund scheme can claim tax credit subject upto maximum of 20% of current year’s taxable income.
All investments in pension funds are subject to market risks. Past performance is not necessary indicative of the future results. Please read the Offering Document to understand the investment policies and risks involved. Investors are expected to seek independent advice so as to determine the tax saving from investment in and voluntary pension schemes.
