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Tips to save Income tax in FY 2021-22
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Govt increases tax on National Saving Scheme returns
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The assets of the Punjab Pension Fund (PPF) are estimated to grow to Rs84.7 billion at the end of the present fiscal year of 2020-21. The government, according to the provincial budget documents, has contributed Rs38.1bn into the fund in 13 years while the remaining Rs46.6bn has been earned through its investments.
The budget documents show the fund has earned a ‘reasonable’ real rate of return of 4.26 per cent per annum since its inception in 2008-09, illustrating the success of its investment strategy. “The investment strategy followed (by the PPF) over the years has worked well. The Pension Fund continues to earn an attractive real rate of return because of its high yielding portfolio of federal government debt like Pakistan Investment Bonds, Term Finance Certificates and National Saving Schemes. The fund’s equity portfolio has also posted a healthy return of 28.8pc during the outgoing financial year,” the documents say.
Daily Times
June 18, 2021
The Ministry of Finance has revised profit rates on various National Savings’ schemes. According to a notification issued on Thursday, the new profit rates will be applicable immediately. The profit rate on 10-year Defence Savings Certificate has been fixed at 9.35 percent, Regular Income Certificate at 8.76 percent, and 6-month Short-Term Savings Certificate at 7.20 percent. Whereas, the profit rate on Pensioners Benefit Account, Shuhada Welfare Account, Special Savings Certificates, Behbood Savings Certificate and saving accounts will remain unchanged, the notification said. Earlier in May, the government made adjustments to returns on almost all national savings instruments with immediate effect. According to notification issued by the Ministry of Finance, the return on Shuhada’s Family Welfare Accounts and Pensioners’ Benefit Accounts had been reduced from 11.52pc to Rs11.04pc with effect from May 19, 2021. Likewise, the profit payable on Bahbood
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