Pension Fund exempted from Income Tax: Kaira

[Lahore_Real_Estate]

LAHORE: Provincial Minister for Finance and Planning & Development, Tanvir Ashraf Kaira has said that the overall size of Punjab Pension Fund (PPF) has reached 12.5 billion rupees after payment of profit of one billion rupees to Punjab government. He expressed these views while presiding over the 10th meeting of the Management Committee of the PPF. The General Manager Aquil Raza Khoja informed the meeting that due to efforts of the Secretary Finance the Federal Board of Revenue through the Finance Act 2010 has included the Punjab Pension Fund in Second Schedule to the Income Tax Ordinance 2001. He told that this would greatly benefit the Fund as income of the Fund will be exempt from income tax. The Committee was further informed that during 9 months the Fund had earned a gross annualized return of 13.88% and after management expenses it had earned net annualized return of 13.71%. On this occasion, the Minister said that the performance of PPF is very good and we hope that the size of fund would be increased further in future. The General Manager informed the Committee that the Fund will continues to build its portfolio of Pakistan Investment Bonds through auction and secondary market purchase. He also informed that the Fund has also started building portfolio of good quality Corporate Bonds.