Investment Income deducted at source

Discussion in 'CB1' started by Dar_Shan0209, Dec 27, 2018.

  1. Dar_Shan0209

    Dar_Shan0209 Keen member


    I am going through the CB1 Notes Chapter 3 Taxation. I am not grasping the concept for- Investment Income deducted at source.

    Any help on this?

    Thank you,
  2. Colin McKee

    Colin McKee ActEd Tutor Staff Member

    Hi, I assume you are referring to the paragraph on page 5 of the course notes. This indicates that if an investor receives an income payment of P after there has been tax deducted at source of T, then the gross amount of (P+T) is often declared to the tax authorities. But when tax is calculated, the amount T that has already been paid, will be taken into account to reduce the further tax that may be payable.
  3. Dar_Shan0209

    Dar_Shan0209 Keen member

    Hi Colin,

    This explanation definitely helps a lot. Thanks a lot.


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