OTHER SOURCES OF INCOME DISCOUNT • Discounts would arise where the bills of exchange by holdings (or promissory notes) are purchased below the face value. • Any profit accrud by holdings the bills until maturity or sales before maturity is assessable to tax as ‘discount’. • Under s 4(c) refer to profits arising from discount received from discounting transactions. PREMIUMS • Premium is a one off payments. It is a consideration connected with the granting of a lease on immoval properties such as land, building and shoplot. Under S 4(d). • Premium is paid to acquire rights under a tenancy. PENSIONS • Periodical payment made to an individual who has permanently ceased to exercise an emplyment. The payment may be contractual or voluntary. It is an income assesable under S 4(e). • Types • 1) General • 2) Voluntary and other pensions Annuities • Define sum of money payable on a regular basis ( annually or by installments) either in perpetuity for life or a fixed term under a contract, will or settlement. Assessable under S 4(e) Alimony • A divorce situation , a husband may be required to pay a sum to support hie ex-wife. • They are no longer married to under separation order. The payment is known as alimony payment. OTHER INCOME , SECTION 4(F) • Income that not fall under s. 4(a)-s.4(e) will be assessed under s4(f) • Ad-hoc income or casual income received by a person.
