How to reflect transfer of Pension Fund to Retirement Annuity on ITR12?
By Marc Sevitz · Updated
My question is when filling in tax code 4006 do I include all contributions to the Retirement Annuity including the lump sum transfer taking into account it is reflected on my ITR12 as a separate page for the original pension fund?
I have submitted it to date as the full amount under 4006 as this is what the certificate I got showed it as. I have been selected for an audit and am just wondering if I have filled in something wrong as I cant see anything else incorrect. I have submitted all supporting documentation as requested but have had no feedback as yet. Each time I query the status it says that documents have been received but not yet processed, my status shows as correction filed and I have been issued an ITA34 but not sure what this means.
When SARS have completed their assessment they will send you a "completion letter" which will indicate the results of your verification. This could take anywhere from a few days to 9 months depending on where you have fallen in the SARS audit trail.
Was any tax deducted on the IRP5 received from the fund?
Was any tax deducted on the IRP5 received from the fund?
Hello
No tax was deducted on the IRP5 for the Pension Fund.
My question is should I include the pension fund amount under 4006?
For arguments sake lets say my total contribution to RA for the year is R 50 000 of which R40 000 is the amount transferred from the Pension Fund and R10 000 is what I contributed throughout the year. Do I reflect R50 000 or R 10 000 in code 4006
Mark
No tax was deducted on the IRP5 for the Pension Fund.
My question is should I include the pension fund amount under 4006?
For arguments sake lets say my total contribution to RA for the year is R 50 000 of which R40 000 is the amount transferred from the Pension Fund and R10 000 is what I contributed throughout the year. Do I reflect R50 000 or R 10 000 in code 4006
Mark
You would reflect the whole amount as the old policy lumpsum was paid to you and then you deposited it in the RA fund. SARS will only allow a certain amount to be deducted anyway because of percentage limitations, but will carry this forward to future years in order for you to get the deduction.