Section 23 (m) of the Income Tax Act affects you as a salary earner. But don't worry; it affects you in a good way.
In terms of the Act, you're allowed to claim the following deductions:
Section 23 (m) of the ITA: Four deductions you're allowed to claim as a salary earner
The Practical Tax Loose Leaf Service outlines the four deductions you're allowed to claim as a salary earner in terms of Section 23 (m) of the ITA.
#1: Pension or retirement annuity contributions that have been deducted from your salary.
#2: Legal expenses incurred for any action, claim, and dispute in the course of carrying on your employment. The exception is that these expenses mustn't be of a capital nature.
If you institute legal proceedings against your employer or former employer for your salary or another benefit not paid, for instance, this won't be considered capital in nature.
#3: Wear-and-tear or depreciation allowances on the assets you use for business purposes, such as a personal computer or cell phone.
#4: Any business-related debt that may have become bad in the year provided that the amount was previously included in your income.
For example, if you're a commission-earning financial advisor and some of your commission was clawed back because of a lapsed insurance policy you sold, you can claim the claw back as a deduction.
Well there you have it. Look out for part two of this article. We'll give you nine more deductions you're allowed to claim as a salary earner.
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