Section 107: Calculation of chargeable income

107. Calculation of chargeable income (1) The chargeable income of an individual in respect of a CPS quarter shall be computed by reference to the chargeable income, the net income and the total net income of the preceding income year as follows— 25 Net Income falling under CPS × Chargeable Income × 100 Total net income (2) Notwithstanding subsection (1), but subject to subsection (3), an individual may opt to compute his chargeable income in respect of a CPS quarter as being the difference between— (a) the gross income for that quarter; and (b) the sum of— (i) the amount of allowable deductions for that quarter including any allowable loss brought forward from the income year preceding the income year to which the quarter relates or from any previous quarter, as the case may be, that relates to the derivation of the gross income; and I5 – 57 [Issue 7] Income Tax Act (ii) 25 per cent of the income exemption threshold to which the individual is entitled under section 27 in respect of that income year. (3) Where any income exemption threshold referred to in subsection (2) has been claimed for the purpose of this Sub-part, that income exemption threshold shall not be claimed for the purpose of Sub-part A of Part VIII. [S. 107 amended by s. 7 (i) of Act 13 of 1996 w.e.f. 1 July 1996; s. 9 (p) of Act 9 of 1997 w.e.f. 1 July 1997; s. 4 (n) of Act 10 of 1998 w.e.f. 1 July 1998; s. 10 (n) of Act 18 of 1999 w.e.f. 1 July 1999; s. 12 (q) of Act 25 of 2000 w.e.f. 1 July 2000; repealed and replaced by s. 18 (zg) of Act 15 of 2006 w.e.f. 1 July 2006 in respect of the income year commencing on 1 July 2006 and in respect of every subsequent income year; s. 8 (z) of Act 37 of 2011 w.e.f. 1 January 2012 in respect of the income year commencing on 1 January 2012 and in respect of every subsequent income year.]