Last year I was retrenched, took the package, and was told that the severance piece was tax free, as it was way below the R500k, just under R40k, got a directive.
Now looking to do my tax return, the amount shows under income (source code: 3901) adding it to my income, however as I was not taxed on it when it was paid, it appears to SARS that I didn't pay the tax then. So now it looks like SARS is asking me for the tax on that amount, as my prelim calculations is saying I must pay in close on R4000?
Am I missing something? Must I take it off or add an amount to 4115?