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Gross Income Means: Received by or Accrued To or in Favour of Deemed To Have Been Received by or Accrued To or in
Gross Income Means: Received by or Accrued To or in Favour of Deemed To Have Been Received by or Accrued To or in
Gross Income Means: Received by or Accrued To or in Favour of Deemed To Have Been Received by or Accrued To or in
How would you treat proceeds from the sell of the rent earning
property?
Capital Receipts Cont’d
A rough guide to determine whether income
is of a revenue or capital nature would be as
follows: -
If the amount flowed from the asset but the asset remained
in ownership it should be considered as revenue.
Characteristics
a) It provides for an annual payment, even if divided into
instalments;
b) It is repetitive, payable from year to year, at any rate, for
some period and;
c) It is claimable from one person to another.
a) Annuities Cont’d
Types Of Annuities:
An ordinary annuity purchased from an insurance
company
I = (P x N) – A
N
Purchased Annuity Cont’d
I = interest content of annuity that is taxable;