Finance Act, 1972

Amendment of sections 127 and 128 of Income Tax Act, 1967.

2.—(1) Section 127 (1) of the Income Tax Act, 1967 , is hereby amended by the insertion, after paragraph (e), of the following paragraph:

“(ee) for requiring any employer making any payment of emoluments to which this Chapter applies, when making a deduction or repayment of tax in accordance with this Chapter and the regulations thereunder, to make such deduction or repayment as would require to be made if the amount of the emoluments were the emoluments reduced by the amount of any contributions payable by the employee and deductible by the employer from the emoluments being paid and which, by virtue of Chapters I and II of Part XII of the Income Tax Act, 1967 , or Chapter II of Part I of the Finance Act, 1972, are for the purposes of assessment under Schedule E allowed as a deduction from the emoluments;”.

(2) Section 128 (1) of the Income Tax Act, 1967 , is hereby amended by the insertion, after “documents”, of “or fails to make any deduction or repayment in accordance with any regulation made pursuant to section 127 (1) (ee)”.