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|