Tax Rebate to Full-Time Teachers and Researchers
Tax Rebate to Full-Time Teachers and Researchers: The Finance Act, 2025 has brought about certain amendments in the Income Tax Ordinance, 2001 (the Ordinance, hereafter). Some significant amendments are explained hereunder:
The tax rebate of 25% against tax liability by full-time teachers or researchers was admissible up to tax year 2022 under omitted sub-clause (2) of clause (1) of Part III of Second Schedule to the Income Tax Ordinance, 2001. No rebate was therefore available to full-time teachers and researchers for tax year 2023 and onwards.
Amendment has been incorporated in the Ordinance through Finance Act, 2025, whereby 25% tax rebate to full time teachers and researchers has been reintroduced by way of inserting a new clause (3A) in Part ill of the Second Schedule of the Ordinance.
The said amendment allowed the tax rebate to these persons for three tax years only mentioned above and will no longer be available for tax year 2026 and onwards.
To know more about our Taxation related advisory click the link Taxation Services for more updates on taxes from FBR click here.
