Jane Doe invested R2 000 000 in a 6.5% fixed-deposit investment on 1 February 2018 with a financial institution for 12 months. Under the fixed deposit contract, the investor is entitled to claim payment of the interest only on the completion of the 12-month period. 

Required:
Discuss, for the scenario, whether the amounts referred to are gross income in the hands of the respective recipients. For amounts that have accrued to a taxpayer, the date of accrual must also be provided.

Answer rating: 100% (QA)

Particulars Gross Income Amount Date of accrual Jane Doe Yes R130000 J... View the full answer