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10 Interest Income - Coggle Diagram
10 Interest Income
taxed as S4(c) income
- as a passive source
- as an investment Y
ie. Int from
- last payment of receivables
- excess cash deposit in bank (FD)
- loan to em'ee/ subs
-
-
taxed as S4(a)
ie. Int derived from
- stock in trade of a biz (mortgage/debenture)
- a licensed money lending biz
-
IF exp > int Y, CYBL (can b/f)
Basis of taxation
s27(1)
- int Y first become receivable in the relevant period
- when it has been received treat as gross Y of the relevant person in the YA it is first receivable
tax on YA of receivable, revise tax comp, pay addition tax
s27(2)(a)
- int receivable of a overlapping period which overlaps the relevant period
- int when received, apportioned on time basis to the relevant period shall be treated as gross Y of the relevant person for the relevant period
s27(3)
Advance Y
biz Y
-
goods
- still use accrual basis
- taxable in the YA of receivable
non biz Y
taxable in the YA of receipt