Where do you insert the reit dividend in the tax return there is no code for it ie 4238? Must you just include it with the interest?
Important:
This answer is based on tax law year ending 28 February 2017.
Answer:
The comprehensive guide to the ITR12 return for individuals (on page 8) states the following:
“If you receive dividends distributed by a Real Estate Investment Trust (REIT), the amount will be reflected next to source code 4238 on the IT3(b) certificate issued to you by the REIT. On your ITR12 return, insert this amount next to source code 4214 and in the description field insert the description as “‘income from a REIT”.”
The reason for this is that dividends (other than those received by or accrued to or in favour of a person that is not a resident or a dividend contemplated in paragraph (b) of the definition of ‘dividend’) distributed by a company that is a REIT doesn’t qualify for the section 10(1)(k) exemption from normal tax. It is also not interest – see also section 25BB.