Widgets

Interest on loans & dividends on shares by building societies

Section 15(2) allows deduction of dividends paid by building societies on deposits by members.

Section 15(3) (a) On money  borrowed by the taxpayer which was wholly and exclusively employed in production of employment income which is  chargeable to tax subject to that amount of deduction not  exceeding investment  income of that loan which  is chargeable to tax.
The above section also allows  deduction of an amount  as interest not  exceeding  56,000 p.a. from  monies borrowed from registered financial institutions e.g. banks, coop societies  etc If it was applied for  the purchase  of residential equipment occupied by  that  taxpayer
Provided a person occupies that residential premise and only one deduction is allowed.
Paragraph C: Partners  are  allowed to  deduct amount of  excess  of  any loss incurred  on the partnership in  respect  of:
   -Deductions on loans realized on investment in shares.
   -Deduction of a business loss. Covered by section 15(4) which allows deduction of a
     Deficit from ascertainment of total income for a person beginning in 1974 with limitations
     On married women whose income is deemed to be that of their husband.

Subsection (5) allows deduction of benefits with relation to a person who   succeeds to a business either under a will/intestacy attributable to any loss incurred by the deceased in earlier years.

Section15 (7) then as it were builds Chinese walls between specified sources of income and…

-Rights for use and occupation of immovable property, employment of personal services         
  For wages, salaries and other rewards
-Employment forming part of wife’s employment income or professional income. 
-Agricultural, pastoral, horticultural, forestry or similar acts.
-Other sources of income chargeable to tax not falling in the above sub paragraph

 
 
 

Like Us on Facebook

Contact Form

Name

Email *

Message *