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Income Tax Act, 1962 (Act No. 58 of 1962)


Seventh Schedule : Benefits or Advantages Derived by reason of Employment or the Holding of any Office



(1) Where—
(a) any employee has been granted the right to occupy residential accommodation owned by his employer or by any associated institution in relation to his employer;
(b) the employee, his spouse or minor child is in terms of an agreement entered into with such employer or associated institution, entitled or obliged to acquire such residential accommodation at a future date at a price stated in such agreement; and
(c) the employee is required to pay in respect of his occupation of such residential accommodation a rental which is calculated wholly or partly as a percentage of the price referred to in item (b),

it shall be deemed for the purposes of this Schedule that the employer or, where the residential accommodation is owned by such associated institution, the associated institution, has granted to the employee a loan equal to the price referred to in item (b) and that interest is payable on such loan at a rate equal to the percentage referred to in item (c).


(2) The provisions of paragraph 2(d) shall not apply to any residential accommodation with which an employee has been provided in the circumstances contemplated in subparagraph (1), and the provisions of paragraph 2(a) shall not apply where any such residential accommodation is acquired by the employee in terms of an agreement referred to in item (b) of that subparagraph at a price which is not lower than the market value of such residential accommodation on the date such agreement is concluded.

[Paragraph 10A(2) substituted by section 60(1) of the Income Tax Act, 1990 (Act No. 101 of 1990)]