Investments in Mutual Funds can get you a tax credit of up to Rs. 60,000

May 26, 2008

In an investor forum recently held at the Karachi Chambers of Commerce & Industries (KCCI), Mir Muhammad Ali, CEO, UBL Fund Managers informed members that individual investors can avail a tax credit of up to Rs. 60,000 when they invest in any mutual fund scheme available in the market.

Investors can avail the tax credit facility by investing a portion of their savings in any mutual fund scheme before June 30, 2008 or if they have already invested from July 1, 2007 to date to benefit from the rebate during the current financial year.

The amount of tax credit an investor can get can be calculated as per Section 62 of the Income Tax Ordinance, 2001: “Unit Holders other than a company shall be entitled to a tax credit under Section 62 of the Income Tax Ordinance, 2001, on purchase of new Units. The amount on which tax credit will be allowed shall be lower of (a) amount invested in purchase of new Units, (b) 10% of the taxable income of the Unit Holder, and (c) Rupees Three hundred thousand (Rs. 300,000), and will be calculated by applying the average rate of tax of the Unit Holder for the tax year. If the Units so acquired are disposed within 12 months, the amount of tax payable for the tax year in which the Units are disposed shall be increased by the amount of tax credit.”

Mir Muhammad Ali commented that ‘Investing in mutual funds has many benefits. Apart from earning an attractive, tax-free return on their investments, the tax credit offer gives considerable relief to individual investors. We at UBL Fund Managers encourage all our investors and employees to take maximum benefit from this offer. We are also running an awareness-building campaign on a national level to create awareness amongst the masses of this incentive. Our investment advisors offer free financial advisory services and help guide investors through the process.”

UBL Fund Managers ranks amongst the top Asset Management Companies operating in Pakistan and offers a wide range of investment products for their retail and institutional investors. The company is currently managing assets of over Rs. 30 billion.