Income Tax Act, 1967.

Allowances from unearned income of persons aged sixty-five or upwards.

135.—(1) An individual who, in the manner prescribed by this Act, makes a claim in that behalf, makes a return in the prescribed form of his total income, and proves that at any time during the year of assessment either he or, in the case of a married man, his wife living with him was of the age of sixty-five years or upwards shall, for the purpose of ascertaining the amount of his assessable income for the purpose of income tax be allowed a deduction from the amount of his unearned income of a sum equal to one-fourth of the amount of that income:

Provided that—

(a) in case the individual is entitled to a deduction exceeding £350 under section 134—

(i) in case that deduction is £500, there shall be no deduction under this section, and

(ii) in any other case, the deduction under this section shall not be greater than the amount by which the deduction under section 134 falls short of £500, and

(b) in any other case, the deduction under this section shall not be greater than £150.

(2) For the purpose of subsection (1) the amount of the unearned income of any individual shall be taken to be the amount of his total income diminished by the amount of his earned income.

(3) The provisions of Schedule 4 and of paragraph IX of Schedule 18 shall, with any necessary modifications, apply in relation to deductions under this section.

(4) In this section “earned income” and “total income” mean respectively earned income as estimated in accordance with the provisions of this Act and total income from all sources as so estimated.