Finance Act, 1983

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Amendment of Part IX (special provisions relating to year of marriage) of Income Tax Act, 1967.

6.— Part IX of the Income Tax Act, 1967 , is hereby amended in Chapter I (inserted by the Finance Act, 1980 ) by the insertion after section 195 of the following section:

“Special provisions relating to year of marriage.

195A.—(1) In this section—

‘income tax month’ has the meaning assigned to it by section 124;

‘year of marriage’, in relation to a husband and his wife, means the year of assessment in which their marriage took place.

(2) Section 195 shall not apply or have effect in relation to a husband and his wife for the year of marriage.

(3) Where, on making a claim in that behalf, a husband and his wife prove that the amount equal to the aggregate of the tax paid and payable by the husband on his total income for the year of marriage and the tax paid and payable by his wife on her total income for the year of marriage is in excess of the tax which would have been payable by the husband on his total income and the total income of his wife for the year of marriage if—

(a) he had been charged to tax for the year of marriage in accordance with section 194, and

(b) he and his wife had been married to each other throughout the year of marriage,

they shall be entitled, subject to subsection (4), to repayment of tax of an amount determined by the formula—

Where—

A is the amount of the aforementioned excess, and

B is the number of income tax months in the period between the date on which the marriage took place and the end of the year of marriage, part of an income tax month being treated for this purpose as an income tax month in a case where the period consists of part of an income tax month or of one or more income tax months and part of an income tax month.

(4) Any repayment of tax under subsection (3) shall be allocated to the husband and to the wife concerned in proportion to the amounts of tax paid and payable by them, having regard to subsection (2), on their respective total incomes for the year of marriage.

(5) Any claim for a repayment of tax under the provisions of subsection (3) shall be made in writing to the inspector after the end of the year of marriage and shall be made by the husband and wife concerned jointly.

(6) All such provisions of the Income Tax Acts as apply in relation to deductions specified in sections 138 to 143 shall apply in relation to any repayment of tax under this section.

(7) This section shall have effect in relation to tax for the year 1983-84 and subsequent years of assessment.”.