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EDF

 

  1. What is an EDF?
  2. Why and when to submit an EDF?
  3. Use made by employers on receipt of EDF
  4. EDF 2014

What is an EDF?

Declaration Form (EDF) claiming the Exemptions and Reliefs to which they are entitled in an income year. An individual is entitled to Exemptions and Reliefs as follows :

 

Category Amount (Rs)
Category A- An individual with no dependent 275,000
Category B- An individual with one dependent 385,000
Category C- An individual with two dependents 445,000
Category D- An individual with three dependents 485,000
Category E- A retired / disabled person with no dependent 325,000
Category F- A retired / disabled person with one dependent 435,000

 

An individual is not entitled to claim an income exemption threshold in respect of :

  1. Category B or Category F, where the total income of the dependent exceeds Rs 110,000;
  2. Category C, where the total income of his second dependent exceeds Rs 60,000;
  3. Category D, where the total income of the third dependent exceeds Rs 40,000.

 

If a person claims in an income year, an income exemption threshold in respect of Category B, Category C, Category D or Category F, the spouse of that individual can claim in that income year an income exemption threshold only in respect of Category A or Category E whichever is applicable.

 

"Dependent" means either a spouse, a child under the age of 18 or a child over the age of 18 and who is pursuing full time education or  training or who cannot earn a living because of physical or mental disability.

 

Child means

  1. an unmarried child, stepchild or adopted child of a person;

     

  2. an unmarried child whose guardianship or custody is entrusted to the person by virtue of any other enactment or of an order of a court of competent jurisdiction;

     

  3. an unmarried child placed in foster care of the person by virtue of an order of a court of competent jurisdiction.

 

"Retired person" means a person who attains the age of 60 at any time prior to the first day of January of an income year and who, during that period, is not in receipt of any business income or emoluments other than retirement pension.

 

Additional exemption in respect of dependent child persuing undergraduate course

  1. Where a person has claimed an Income Exemption Threshosld in respect of category B, C, D or F and the dependent is a child persuing a non-sponsored full-time undergraduate course at a recognised tertiary educational institution, the person may claim an additional exemption in respect of that child as follows:
    1. Rs 80,000 - Where a child is persuing his undergraduate course in Mauritius at an institution recognised by the Tertiary Education Commision; or
    2. Rs 125,000 - Where a child is persuing undergraduate course outside Mauritius at a recognised institution.

     

  2. The additional exemption is not allowable:
    1. in respect of more than three children;
    2. in respect of the same child for more than 3 consecutive years;
    3. where the tuition fees, excluding administration and student union fees are less than Rs 44,500;
    4. to a person whose total income (net income plus interest and dividends received) or that of his / her spouse for the income year ending 31 December 2014 exceeds Rs 2 million.

 

Interest Relief on secured housing loan

  1. A person who has contracted a housing loan, which is secured by a mortgage or fixed charge on immovable property and which is exclusively for the purchase or construction of his first house, may claim a relief in respect of the interest paid on the loan.

     

  2. The relief to be claimed in the EDF is the amount of interest payable in the income year ending 31 December 2014 or Rs 120,000, whichever is lesser.In the case of a couple where neither spouse is a dependent spouse, the relief may be claimed by either spouse or at their option, divide the claim equally between them provided thet the claim does not, in the aggregate, exceeds Rs 120,000.

     

  3. The loan must have been contracted on or after 1stjuly 2006 from
    1. a bank, a non-bank deposit taking institution, an insurance company or the Sugar Industry Pension Fund;
    2. the Development Bank of Mauritius by its employees; or
    3. the Statutory Bodies Family Protection Fund by its member

       

  4. The relief is not allowable where the person or his spouse:
    1. is, at the time the loan is contracted, already the owner of a residential building;
    2. derives in the income year ending 31st December 2014, total income (net income plus interest and dividend received) exceeding Rs 2 million;
    3. has benefitted from any new housing scheme set up on or after 1st January 2011 by a prescribed competent authority.

     

  5. The relief is allowable for 5 consecutive years only.

     

  6. Relief for Medical Health Insurance Premium :

     

    A person may claim relief for premium payable in respect of medical or health insurance policy contracted for himself or his dependent in respect of whom Exemption Threashold has been claimed. The relief is limited to the amount of premium payable for the income year up to a maximum of :

    • Rs 12000 for self ;
    • Rs 12000 for first dependent;
    • Rs 6000 for second dependent;
    • Rs 6000 for third dependent.

     

    No relief should be claimed where the premium or contribution is payable by the employer or under a combined  medical and life insurance scheme.

 

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Why and when to submit an EDF?

 

At the beginning of an income year the MRA will provide EDFs to all persons who are registered as employers with the Director-General. The forms should be made available to employees to enable them to claim the Income Exemption Threshold to which they are entitled. Where a person is registered as an employer in the course of an income year, the forms will be provided to him at the time of registration. The EDF may also be downloaded from the MRA website.

 

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Use made by employers on receipt of EDF

 

On receipt of EDFs from employees, the employer should ensure that the forms are duly completed and signed. A form without any claim for Income Exemption Threshold is not valid and the employee concerned should be treated as if he had not furnished an EDF. The law makes it an offence for an employer to divulge or communicate to any person other than the Director-General any information contained in the EDF furnished by an employee or any matter relating to PAYE and concerning that employee. However, the employer may disclose to the employee or, with his written consent, to any other person any information or matter relating to PAYE concerning that employee.

 

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