Last Updated on July 21, 2025 by Galaxy World
I am sharing the latest Notification stoppage of income tax relief for teachers & Researchers. The teachers and researchers had relief from their income tax. But now they have no more relief. The details are as follows:
Stoppage of income tax relief for teachers & Researchers
An amendment has been made through Finance Act 2025 by insertion of clause 3A, Part III of Second Schedule of Income Tax Ordinance, 200,1, according to which tax reduction is restored retrospectively from 01-07-2022 and comes into effect after tax year 2025 (copy enclosed).
- Therefore, all Heads of Local Accounts Officers are advised to ensure the implementation of the above provision of Finance Act, 2025, and stop said tax relief to full-time teachers and researchers employed in PAEC w.e.f. 01-07-2025.
- These issues with the approval of Member (finance).
All Directors (Finance) / Head LAOs of PAEC Establishment (Open/Classified/NP)
CC:-
- SPSO to Chairman, PAEC.
- SPSO to Member (Finance)
- PA to DG (Finance)-(Open/Classified/NP)
Copy of Income Tax Rules
(C) In Part III, after Omitted Clause (3), the following new clause shall be inserted m namely:-
‘(3A) The tax payable by a full-time teacher or a researcher, employed in a non-profit education or rreserach institution institution duly recognized by Higher Education Commission, a Board of Education or a Universuty recognized by the Higher Education Commission, including government eserach institution, shall be reduced by an amount equal to 25% of tax payable on his income from salary:
Provided that this clause shall not apply to teachers of medical profession who derive income from private medical practice or who receive a share of consideration received from patients.
Provided further that the provision of this clause shall be deemed to have been in force with effect from the first day of July, 2022, and shall cease to have effect after tax year 2025.”
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