TAX2601
ASSIGNMENT 3 SEMESTER 2 2024
UNIQUE NO.
DUE DATE: 2 SEPTEMBER 2024
, TAX2601
Assignment 3 Semester 2 2024
Unique Number:
Due Date: 2 September 2024
Principles of Taxation
QUESTION 1: Gross Income Definition and Application to Easy Elevators (Pty) Ltd
Definition of Gross Income
Under Section 1 of the Income Tax Act 58 of 1962, gross income is defined as:
The total amount,
in cash or otherwise,
received by or accrued to,
during the year of assessment,
excluding receipts or accruals of a capital nature,
from a source within or deemed to be within the Republic.
Let's discuss each of these requirements in relation to the R45,000 received by Easy
Elevators (Pty) Ltd (EE) to determine if it constitutes gross income for the year of
assessment ending on 31 March 2024.
1. Total Amount
The R45,000 received by EE is a specific and quantifiable amount, satisfying the first
criterion.
2. In Cash or Otherwise
The payment was made in cash, deposited directly into EE’s bank account, fulfilling this
requirement.
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