How to save Income Tax by investing in Mutual Funds and Voluntary Pension Schemes (VPS):
Invest in JS Investment's Mutual Funds and VPS. You can use the calculator to calculate Tax Credit available to you on your investments.
If you are a Salaried individual, inform your Payroll Department about your investments by submitting your Account Statement. Your monthly income tax deductions will be reduced by adjusting them against tax credit generated on your Mutual Fund and VPS investments.
As per Section 62 of Income Tax Ordinance (2001), an individual investor can claim tax credit on investment up to R. 2,000,000/- or 20% of individual's taxable income (whichever is lower) on an investment made in Open-end Mutual Funds (unit trust schemes) between July 1st and June 30th.
As per Section 63 of Income Tax Ordinance (2001), an eligible person joining Voluntary Pension Scheme at the age of 41 years or above, during the first ten years, shall be allowed additional contribution of 2% per annum for each year of age exceeding 40 years. However, the total contribution shall not exceed 30% of the total taxable income of the preceeding year.
To avail Tax Rebate, a minimum investment holding period of two years from the date of investment is required.