Under Clause 2 of Part III of the Second Schedule to the Income Tax Ordinance, 2001, the tax payable by a person shall be reduced by 40% of tax payable on salary income if the following conditions are fulfilled
- He/she is be a full time teacher or a researcher;
- He/she is employed in a non-profit education or research institution duly recognized by Higher Education Commission, a Board of Education or a University recognized by the Higher Education Commission, including Government training and research institutions.
To claim this reduction while filing income tax return in Iris
(i) click ‘Tax Chargeable / Payments’ on the left of the screen
(ii) click ‘Tax Reductions’
(iii) Enter the amount of Tax Reduction for Full Time Teacher / Researcher against code 9302 in the third column titled ‘Amount’
If the amount entered against the code is greater than the reduction allowed as per law, Iris will automatically reduce it to the allowable amount on pressing ‘Calculate’