Teacher/researcher with rent/profit income

[mensan]

Teacher/Researcher has 75% rebate in tax. What if he has additional income (no connection with his job) from rent of house or profit on investment in fixed deposit? How much tax will be applicable on that income?

[mensan]

Some expert may kindly reply to my question.

[cowsgonemadd]

I am not expert but as far as i know tax rebate will be allowed only on taxable salary...

for example you have 2 incomes

1. Salary as teacher/researcher = 100,000
2. Property income= 300,000

Total income = 400,000

Lets assume tax rate is 20%

rs 80,000 is tax payable

salary income is 100,000/400,000 * 100 = 25%

25% of tax liability is 20,000 - Now THIS WILL BE REDUCED BY 75% so it becomes rs 5,000


final tax payable = 5000 + 60,000 = 65,000


Hope it made sense lol

[student_of_law]

I also agree with the answer, given above.

It is supported by the relevant provision i.e. sub clause (2) of Clause 1A of 2nd Schedule Part III, that says

The tax payable by a full time teacher or researcher, ........ shall be reduced by 75% of tax payable on his <b><u>"income from salary"</u></b>.

So the reduction will be equivalent to 75% of tax payable on salary income only.

[mensan]

Thank you for replies. What about the following question

What if teacher/researcher has additional income in the form of award/hounorarium given to him by his department/govt based on his performance in job (like Higher Education Commission gives cash awards to best teachers)? How much tax will be applicable on that income (100% or 25%)?

[student_of_law]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by mensan</i>
<br />Thank you for replies. What about the following question

What if teacher/researcher has additional income in the form of award/hounorarium given to him by his department/govt based on his performance in job (like Higher Education Commission gives cash awards to best teachers)? How much tax will be applicable on that income (100% or 25%)?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

I could not find anything specific on it. In my opinion, it should be treated as income from other sources if award , honorarium is given by HEC.

If by employer then it should be part of salary,as s.12 defines salary as any amount received by an employee from any employment.

[mensan]

Thank you.