Page 9 - P6 Slide Taxation - Lecture Day 7 - Various Topics
P. 9

Important aspects to remember when the taxable income and the tax

        • Can a TP adjust its retirement lump sum benefit , severance benefit or


           retirement lump sum withdrawal benefit against any of the following
           items?


                      - Assessed loss in column 3 [s 20]?
                         → proviso (c) to s 20(1)


                      - Section 6 rebates (primary, secondary and tertiary)?
                      - Section 6A credit?


                      - Section 6B credit?


        - At the calculation of taxable income when limitations ito sections 11(k),

            11(n) and 18Aare applied: EXCLUDE any fund lump-sum received from

            limitations.




        - Section 23(i) prohibits any deduction to be made against fund

            benefits, except for deductions in terms of par 5 & 6 of the 2nd

            Schedule.



        - The tax tables are applied on a cumulative basis over the

            lifetime of the TP!
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