Finance Act, 1969

Amendment of section 118 of Income Tax Act, 1967.

32.Section 118 of the Income Tax Act, 1967 , is hereby amended in relation to tax for the year 1969-70 and subsequent years—

(a) by the deletion of subsections (3) and (5),

(b) by the deletion from subsection (4) of “and the asset is not premises”, and

(c) by the insertion at the end of subsection (4) of the following—

“In the case of an asset being premises, the annual value of the use of the asset shall be taken for the purposes of this subsection to be the rent which might reasonably be expected to be obtained on a letting from year to year if the tenant undertook to pay all usual tenant's rates, and if the landlord undertook to bear the costs of the repairs and insurance, and the other expenses, if any, necessary for maintaining the premises in a state to command that rent.”.