The Affordable Housing Act, 2024 (AHA), published and gazetted on 19 March 2024, contains consequential amendments as specified in section 60 of the Act and in the Third Schedule to the Act.
According to section 60 of the AHA, the Acts specified in the first column of the Third Schedule are amended in the manner specified in the second column.
The Third Schedule to the AHA amends the Income Tax Act by adding section 30A(1A) and amends Schedule 3 of the Income Tax Act. These amendments allow for the tax relief for employee contributions made towards the Affordable Housing Levy.
However, according to section 1 of the AHA, sections 4 and 5 came into operation on the date of assent, and all other sections will come into operation on such date as may be prescribed by the Cabinet Secretary by notice in the Gazette. To date, no such Gazette has been published.
Therefore, section 60 with the Third Schedule's consequential amendments which institute the affordable housing tax relief for employee Affordable Housing Levy contributions are not effective yet.
Refer to the attached Affordable Housing Act for the extracts of the sections mentioned above.
This is why the monthly PAYE iTax file does not make provision for this relief yet.
Once there are any further developments on this, it will be communicated.
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