Fin24 answers your tax queries

2013-03-01 10:21
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A Fin24 user writes:

Of great concern to pensioners is the amount of interest that is exempt from tax. Has the exempt amount increased from R22 800?

A PwC expert responds:

For the 2013 tax year it is R22 800 for individuals under 65 years of age and R33 000 for those over 65. These amounts increase to R23 800 and R34 500 respectively for the 2014 tax year.

A Fin24 user writes:

My basic salary per month is R6 500.00, but my tax is not R 216.67, as per the tax chart. I pay R398.60. Why is my tax so high? Please help!

A PwC expert responds:

For the 2013 tax year, the correct amount of tax on a monthly salary of R6 500 is in fact R216.67, provided that this income was earned every month throughout the tax year and no other income such as a bonus or overtime was also earned during the tax year.

We suggest that you clarify this with your employer.

A Fin24 user writes:

I am a 70-year-old pensioner. Where in the budget can I read up about the capital interest deduction for tax submission purposes?

A PwC expert responds:

For the 2013 tax year the interest exemption is R22 800 for individuals under 65 years of age and R33 000 for those over 65. These amounts increase to R23 800 and R34 500 respectively for the 2014 tax year.

A Fin24 user writes:

Does the R75 000 lump sum that you can commute from a retirement annuity (RA) only count for one RA or all of your RAs?

A PwC expert responds:

We assume that you are referring to the maximum retirement annuity fund lump sum that you can take before being limited to only one-third as a lump sum, and the balance must be used to purchase an annuity.

This limitation applies to each retirement annuity lump sum that you receive so if you have, for example, three different retirement annuities and the lump sum from each of them is below R75 000, then you can take the full lump sum for all of them and will not be obliged to only take one-third as a lump sum.

A Fin24 user writes:

I am 71 years old. I have not been able to pick up pensioners' medical position. Are we still able to claim full medical expenses as deductions from taxable income?

A PwC expert responds:

There has been no change as far as this is concerned for taxpayers older than 65 and the status quo will remain until the end of the current year of assessment, ie February 28 2014.

There will, however, be a change from March 1 2014, when the current tax deduction will be replaced with the tax credit system that currently applies to taxpayers under 65 years of age.

However, there will be an additional concession for taxpayers older than 65 or taxpayers with physical disabilities.

 - Fin24

Do you have a budget-related question? If so, post it on our Money Clinic section and we will get an expert to answer your query.

* Visit our Budget Centre for full coverage of the 2013 Budget Speech, including a sin tax and personal tax calculator.

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