Finance Act, 1967
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Amendment of section 523 of Income Tax Act, 1967. |
10.—The following section is hereby substituted for section 523 of the Income Tax Act, 1967 : | |
“523.—(1) For the purpose of charging sur-tax for any year of assessment, there shall be deducted from the total income of an individual— | ||
(a) an amount equal to the aggregate of the deductions which, in ascertaining the amount of the income on which he is to be charged to income tax for that year of assessment, he is entitled to be allowed under sections 138 (1) (2), 139, 140, 141 and 142, and | ||
(b) in the case of an individual who for that year of assessment is entitled, under section 134, to be allowed a deduction from the amount of his earned income for the purposes of ascertaining the amount of his assessable income for the purposes of income tax— | ||
(i) the amount, as determined for the purposes of the said section 134, of his earned income in case that amount does not exceed £1,250, and | ||
(ii) £1,250 in any other case. | ||
(2) Where— | ||
(a) an individual not resident in the State is entitled to a deduction under this section for any year of assessment, and | ||
(b) any relief to which he would, disregarding section 153, be entitled for that year under the provisions specified in subsection (1) falls to be given to him by virtue of the said section 153 subject to a reduction in accordance with the provisions of that section, | ||
the deduction shall be reduced in the proportion in which the relief is reduced. | ||
(3) In the case of a husband and wife who are for any year of assessment separately assessed to tax by virtue of an application under section 197 or 198, the following provisions shall apply in relation to any deductions to be made under paragraph (a) or (b) of subsection (1) for that year: | ||
(a) whether or not they are separately assessed to sur-tax, the deduction to be made from their total income shall be the same as if there were no separate assessment; | ||
(b) where they are separately assessed to sur-tax, the resulting relief from sur-tax shall be divided between them— | ||
(i) by treating any amount included in a deduction under paragraph (a) of subsection (1) in respect of relief under section 141 (2) or 142 as reducing the income of the husband or the wife according as he or she maintains the child, relative, son or daughter, in respect of whom that relief is given, | ||
(ii) by apportioning the remainder of a deduction under the said paragraph (a) between the husband and the wife in proportion to the amounts of their respective incomes (treating those incomes, where appropriate, as being reduced in accordance with subparagraph (iii)) and treating the amount so apportioned to either spouse as reducing the income of that spouse, | ||
(iii) by apportioning a deduction under paragraph (b) of subsection (1) between the husband and the wife in proportion to the amounts of their respective earned incomes and treating the amount so apportioned to either spouse as reducing the income of that spouse, but so that, if the amount by which the income of either falls to be reduced under subparagraphs (i), (ii) and (iii) exceeds the amount of that income, the income of the other shall be treated as reduced by the amount of the excess.” |