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 condition’s:
(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 Education Commission,
(ii) Board of Education,
(iii) A University recognized by the Higher Education Commission,
(iv) Government Training & Research institution.
(3) 75% reduction 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 |
