Section 10(1)(q) of ITA

(q)     any bona fide scholarship or bursary, other than any scholarship or bursary contemplated in paragraph (qA), granted to enable or assist any person to study at a recognized educational or research institution: Provided that if any such scholarship or bursary has been so granted by an employer or an associated institution (as respectively defined in paragraph 1 of the Seventh Schedule) to an employee (as defined in the said paragraph) or to a relative of such employee, the exemption under this paragraph shall not apply

[Words preceding the proviso substituted by section 16 of Act 17 of 2017 effective on 1 March 2018 and applies in respect of years of assessment commencing on or after that date]

(i)      in the case of a scholarship or bursary granted to so enable or assist any such employee, unless the employee agrees to reimburse the employer for any scholarship or bursary granted to that employee if that employee fails to complete his or her studies for reasons other than death, ill-health or injury;

(ii)     in the case of a scholarship or bursary granted to enable or assist any such relative of an employee so to study –

(aa)   if the remuneration proxy derived by the employee in relation to a year of assessment exceeded R600 000;

[Sub-paragraph (aa) amended by section 1(2)(c) of Act 3 of 2008, substituted by section 23(1)(t) of Act 31 of 2013, by section 23(1)(e) of Act 15 of 2016 and by section 7(1)(a) of Act 14 of 2017 and amended by section 10(1)(b) of Act 23 of 2020 effective on 1 March, 2021 and applicable in respect of years of assessment commencing on or after that date]

(bb)   to so much of any scholarship or bursary contemplated in this subparagraph as in the case of any such relative, during the year of assessment, exceeds-

(A)    R20 000 in respect of-

[Words preceding subsubitem (AA) substituted by section 23 of Act 15 of 2016 and section 7 of Act 14 of 2017 effective on 1 March 2017, applies in respect of years of assessment commencing on or after that date]

(AA)  grade R to grade twelve as contemplated in the definition of ‘school’ in section 1 of the South African Schools Act, 1996 (Act No. 84 of 1996); or

(BB)  a qualification to which an NQF level from 1 up to and including 4 has been allocated in accordance with Chapter 2 of the National Qualifications Framework Act, 2008 (Act No. 67 of 2008);

[Subitem (A) substituted by section 16 of Act 25 of 2015 effective on 1 March 2013]

(B)    R60 000 in respect of a qualification to which an NQF level from 5 up to and including 10 has been allocated in accordance with Chapter 2 of the National Qualifications Framework Act, 2008 (Act 67 of 2008); and

[Sub-paragraph (bb) amended by section 1(2)(c) of Act 3 of 2008, substituted by section 23(1)(t) of Act 31 of 2013 and amended by section 10(1)(b) of Act 23 of 2020 effective on 1 March, 2021 and applicable in respect of years of assessment commencing on or after that date] 

[Item (B) substituted by section 23(1)(g) of Act 15 of 2016 and by section 7(1)(c) of Act 14 of 2017 deemed effective on 1 March, 2017 and applicable in respect of years of assessment commencing on or after that date]

(cc)   if any remuneration to which the employee was entitled or might in the future have become entitled was in any manner whatsoever reduced or forfeited as a result of the grant of such scholarship or bursary;

[Sub-paragraph (cc) added by section 10(1)(b) of Act 23 of 2020 effective on 1 March, 2021 and applicable in respect of years of assessment commencing on or after that date]

[Paragraph (q) deleted by section 12(1)(i) of Act 129 of 1991, inserted by section 10(1)(p) of Act 141 of 1992, amended by section 10(1)(f) of Act 28 of 1997, by section 13(1)(c) and (d) of Act 30 of 2002 and substituted by section 10(1)(o) of Act 20 of 2006 and amended by section 16(1)(h) of Act 17 of 2017 effective on 1 March, 2018 and applicable in respect of years of assessment commencing on or after that date]