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!