Results 1 to 5 of 5

Thread: Endowment Policy

  1. #1
    Diamond Member Mike C's Avatar
    Join Date
    Apr 2012
    Location
    Umkomaas
    Posts
    2,850
    Thanks
    249
    Thanked 371 Times in 327 Posts

    Endowment Policy

    Hi all - a small endowment policy I had for many years has matured and I was paid out in January.

    I never received and IT3 or anything like that from Momentum - just a letter informing that I was paid out.

    Must this amount be declared under "Income which you think is exempt from tax?"
    No act of kindness, no matter how small, is ever wasted. - Aesop "The Lion and the Mouse"

  2. #2
    Diamond Member Mike C's Avatar
    Join Date
    Apr 2012
    Location
    Umkomaas
    Posts
    2,850
    Thanks
    249
    Thanked 371 Times in 327 Posts
    And another question - I get R750 a month for doing a company's books. I am not employed by the company.

    Where would I declare that and as what?
    No act of kindness, no matter how small, is ever wasted. - Aesop "The Lion and the Mouse"

  3. #3
    Silver Member
    Join Date
    Sep 2012
    Location
    Louis Trichardt
    Posts
    334
    Thanks
    58
    Thanked 43 Times in 39 Posts
    As far as I understand this endowment policy is exempt, not sure in which section of the Income Tax Act that is specified.

    But yes, you have to declare both.

    The R750 will be declared under the income statement part, where you can deduct expenses relating to this.

  4. Thanks given for this post:

    Mike C (03-Jul-13)

  5. #4
    Email problem Rafael's Avatar
    Join Date
    Oct 2012
    Location
    Johannesburg
    Posts
    129
    Thanks
    8
    Thanked 29 Times in 20 Posts
    An endowment policy is taxed within the fund so it is payed out tax free
    You miss 100% of the chances you never take

  6. Thanks given for this post:

    Mike C (03-Jul-13)

  7. #5
    Diamond Member Mike C's Avatar
    Join Date
    Apr 2012
    Location
    Umkomaas
    Posts
    2,850
    Thanks
    249
    Thanked 371 Times in 327 Posts
    The R750 will be declared under the income statement part, where you can deduct expenses relating to this.
    So I clicked the "Local Business, Trade and Prof Income (incl rental income)" section, to see where I declare the R750 per month.

    Ten columns were added asking about all kinds of things - A long list of income options, an even longer list of expenditure options, an area for Adjustments Add back, and Adjustments Allowable, Determination of Profit/Loss, stuff about EDZ (s 13quat) - whatever that is, and then on the last page two columns requiring a statement of Local Assets and Liabilities!

    Talk about overkill! Is all this necessary or am in the wrong section?
    No act of kindness, no matter how small, is ever wasted. - Aesop "The Lion and the Mouse"

Similar Threads

  1. Cellphone policy
    By HR Solutions in forum General Business Forum
    Replies: 4
    Last Post: 27-May-13, 09:03 AM
  2. [Question] School language policy
    By jeriel01 in forum General Regulatory Compliance Forum
    Replies: 10
    Last Post: 22-Jan-13, 10:26 AM
  3. Employee Indebtedness Policy
    By hm2hu in forum Labour Relations and Legislation Forum
    Replies: 5
    Last Post: 23-Jul-11, 10:22 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •