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Filing Rental Income on Itax

id : 54   cat : Business Tax   
Hi members.rental income of ksh 12000 & below is not taxable as per the budget 2016/2017. However the template for filling rental income does not consider this.Please assist .
Asked by : Henry Wairidi
 DOQ : 2016-07-19 05:22:00
   Henry Wairidi

Answer

Rental income sec 6A cap470 : s.6A came into being in the 2015/16 FY and was the section responsible for introducing residential rental income fo rental income not exceeding 10million. 2016/17 budget exempted the first 12k per month rental income from tax. You can apply it manually by reducing the rent reported each month by 12k in the itax template. Rental income sec 6A cap 470 : Effective date 9th June 2016. Kindly note this is a Finance bill. The contents may change to reflect your position by the time it's debated and passed in Parliament..
Answered by : John Muiruri
 DOA : 2016-07-24
   John Muiruri
Comments
Agreed. WE are ALL doing a fantastic Job. You are welcome ANY time.
   John Muiruri    John Muiruri  2016-07-24 08:22:00
I think it's worth the debate on this platform as well. Thanks CPA John. You are doing a good job
   Nganga Mwangi    Nganga Mwangi  2016-07-24 08:19:00
Rental income sec 6A cap470 : Thanks for the twist CPA Nganga. However, the proposals contained in the 2016 Finance bill, s.3 talks of " is in EXCESS of 144k ...." per year. Interpretation implies that anything out of this rage RRIT is nil.
   John Muiruri    John Muiruri  2016-07-24 08:09:00
I think the spirit and the intention was to save the low rent income earners from the burden of tax and not exempting the first 12,000 from taxation. I stand to be corrected
   Nganga Mwangi    Nganga Mwangi  2016-07-24 07:57:00


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