Post # 24: Conditions for Rebate of 75% in Tax Payable of Full Time Teachers & Researchers

Q. Sir, full time teachers ko 75% rebate milta he...Can u tell me d conditons which have to be fulfilled to claim the rebate?

Ans. This rebate/reduction is available subject to the following condiotns:

(1) Taxpayer must be a FULL TIME TEACHER, or FULL TIME RESEARCHER.

(2) Full time teacher or  researcher must be employed at one of the following:

(i) Non-profit education or research institution duly recognized by Higher Educaion Commission,

(ii) Board of Education,

(iii) A University recognized by the Higher Education Commission,

(iv) Government Training & Research institution.

(3) 75% reducion is to be made only from Tax Payable on income from Salary.

Illustration: X, a Professor at a university recognized by HEC, derived taxable income amounting to Rs. 780,000/- for Tax Year 200X, which included IFOS amounting to Rs. 58,000/-. His tax payable at assumed tax rate of 10% is 78,000/-. In this instance, rebate of 75% will be allowed as follows:

Tax Payable for the Tax Year	78,000/-
Tax Payable On Salary (W-1)	72,200
Rebate of 75%	54,150
Net Tax Payable (78,000 - 54,150)	23,850

W-1
78,000 x	722,000	=	72,200
	780,000