Which benefit is liable to income tax only?

The State Illness Benefit is liable to income tax only, as it is considered a form of income support provided by the government to individuals who are unable to work due to illness or injury. This benefit is intended to provide a replacement income, and like other forms of income, it is subject to income tax regulations.

In contrast, the State Widow's Contributory Pension typically serves as a social security benefit rather than a taxable income, intended to support a widow or widower after the loss of a spouse, and it may have different tax implications. Income Protection premiums, on the other hand, are the payments made to insure against loss of income due to disability, and the premiums are generally paid with after-tax income; when benefits are paid out, they can be tax-exempt depending on the policy. ARF (Approved Retirement Fund) incomes involve withdrawals from retirement funds, which are subject to specific tax treatments that may involve both income tax and capital gains tax, making them more complex regarding tax liability.

Thus, State Illness Benefit stands out as a benefit specifically recognized as taxable income, aligning it with standard income tax rules rather than being treated as a special benefit under different tax provisions.