Tax credit for investment in health insurance (Section 62A)

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This blog is in continuation to the series "Curtailing the Tax Liability (Part II) - Tax Credits".



Disclaimer: This blog will be updated over the period of time with practical examples, sample letters and relevant case laws and due to the volatility of tax statutes it is subject to unprecedented changes as and when required.




Tax credit for investment in health insurance (Section 62A)




A resident person 



- Being filer; and 


- other than company 


         shall be entitled to tax credit any insurance premium paid to insurance company registered with Security Exchange Commission of Pakistan; Only if the person is deriving income from Salary or Business 



Computation 


Tax Credit = (A / B) X C 



A = Tax assessed before any tax credit 

B = Taxable Income for the year 

C = Lesser of following: 

- Total Contribution or Premium 

- 5% of taxable income 

- Rs. 150,000/-




NOTE: In addition to above please click here to read Miscellaneous Provision of Tax Credit (Section 65);




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