A taxpayer has no remuneration income. She has rental income and a student bursary with the University of Stellenbosch. How will the student bursary be treated on her income tax return as this is not a bursary from employment?
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
We take the ‘has no remuneration’ to mean that the individual did not receive the bursary from an employer. The bursary must be declared as an amount not subject to tax if it meets the requirements of section 10(1)((q) - most probably. The relevant parts of the provision reads as follows: There shall be exempt from normal tax … any bona fide scholarship or bursary, other than any scholarship or bursary contemplated in paragraph (qA), granted to enable or assist any person to study at a recognised educational or research institution … The words in section 10(1)(q) preceding the proviso.