Tax Rebates & Refunds

File for tax refunds on your annuity income

January 29, 2011
Posted in Tax Rebates — Written by Geoffrey

Are you short on cash? Do you rely on loans to fund your basic necessities? Have you purchased a life annuity investment? If yes, then you might be paying taxes that you do not need to.

Reclaim tax on life annuities

You might have noticed a 20% tax deduction on purchase of the life annuity. It should be noted that this tax is applicable only to people who earn above the tax free amount. If you are earning below the taxable income, you can ask for a tax refund on your life annuity.

How to make a claim for refund on life annuity?

In order to make a claim, you will have to fill in an R89 form. This form will let you recover the tax that you paid after purchasing the scheme. It is important to ensure that you file for the returns on time. Certain time limits for tax refunds are mentioned below.

• Last claim date for taxes paid on 5th April 2007 is 31st March 2012
• Last claim date for taxes paid on 5th April 2008 is 5th April 2012
• Last claim date for taxes paid on 5th April 2009 is 5th April 2013
• Last claim date for taxes paid on 5th April 2010 is 5th April 2014

Refer to the aforementioned dates when filing for a tax refund on a life annuity.

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