A tax Rebate means an amount that a taxpayer is eligible to get back if his/her tax amount exceeds the accountability. A taxpayer is eligible for a tax rebate if he/she paid too much tax. For example, if your income tax is Rs. 30,000 and you have paid around Rs. 40,000 in tax. Then, in this case, you can apply for a tax rebate.
How do I calculate tax rebates in South Africa?
Different tax amounts are applied according to the person’s income. You can calculate your tax rebate by going through the following procedure.
- First of all, calculate your gross income.
- Identify the deductions from your gross income. These deductions involve medical as well as dental expenses, house rent, student charity amounts, or various taxes.
- After all the deductions, your net income does not cross over five lakhs ( 50,000 ). Then you can apply for a tax rebate.
How do I apply for a tax rebate?
There are three types of tax rebates in South Africa. There are;
- Primary tax rebate.
- Secondary tax rebate.
- Tertiary tax rebate.
It depends on whether you are 60 years of age or older. You can apply for a tax rebate by filling out an application form. You will get the amount after verification of your application form.
How much of a tax rebate is available in 2022?
The following tax rebates are available in South Africa from March 2022 to February 28, 2023, which include:
- People who are below 65 years old are eligible for a primary tax refund of ZAR 16,425.
- People who are above 65 years of age or below 75 years of age can get a secondary tax rebate of ZAR 9,000.
- People above 75 years of age are eligible for a tertiary tax rebate of about ZAR 2,997.
Who is eligible for a tax refund?
The following people can apply for a tax rebate.
- If the person has stopped working and is not getting any personal allowance.
- Further, if he/she has paid extra over a pension or paid extra tax on a lump-sum pension payment.
- If, by any chance, an extra tax amount was deducted from your income.
How long will it take for the tax rebate procedure to be completed?
After filling out an application form, it will take some time for verification. It will take around 8 -12 weeks to accept the application.