Finance Act, 1936

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Certain assessments on officers of local authorities.

2.—(1) In this section the word “salary” has the meaning given to it for the purposes of the Local Services (Temporary Economies) Act, 1934 (No. 16 of 1934), by sub-section (1) of section 3 of that Act as modified or qualified by the subsequent sub-sections of the said section.

(2) This section applies to every person who, for the year beginning on the 6th day of April, 1934, was entitled under sub-section (2) of section 3 of the Finance Act, 1934 (No. 31 of 1934), to the deduction mentioned in that sub-section and was charged for both the said year beginning on the 6th day of April, 1934, and the year beginning on the 6th day of April, 1935, under Schedule E of the Income Tax Act, 1918, by reference to the income of the year which was, in the case of each such year, the preceding year.

(3) Where the aggregate amount (in this sub-section referred to as the first aggregate) of—

(a) the income as computed for the purpose of the assessments made under Schedule E of the Income Tax Act, 1918, for the year beginning on the 6th day of April, 1934, upon a person to whom this section applies in respect of his salary, and

(b) the income as computed for the purpose of the assessments made under the said Schedule E for the year beginning on the 6th day of April, 1935, upon such person in respect of his salary,

exceeds the aggregate amount (in this sub-section referred to as the second aggregate) of—

(c) the salary (as reduced under the Local Services (Temporary Economies) Act, 1934 ) actually earned by such person for the year beginning on the 6th day of April, 1933, and

(d) the salary (as reduced as aforesaid) actually earned bysuch person for the year beginning on the 6th day of April, 1934,

the amount by which the first aggregate exceeds the second aggregate may, unless allowance for income tax in respect thereof has been given otherwise, be treated as a deduction in computing the amount of the income of such person assessable to income tax for the year beginning on the 6th day of April, 1936, in respect of his salary.

(4) Where the aggregate amount (in this sub-section referred to as the first aggregate) of—

(a) the salary (as reduced under the Local Services (Temporary Economies) Act, 1934 ) actually earned by a per son to whom this section applies for the year beginning on the 6th day of April, 1933, and

(b) the salary (as reduced as aforesaid) actually earned by such person for the year beginning on the 6th day of April, 1934,

exceeds the aggregate amount (in this sub-section referred to as the second aggregate) of—

(c) the income as computed for the purpose of the assessments made under Schedule E of the Income Tax Act, 1918, (as adjusted by repayment or otherwise) for the year beginning on the 6th day of April, 1934, upon such person in respect of his salary, and

(d) the income, as computed for the purpose of the assessments made under the said Schedule E (as adjusted by repayment or otherwise) for the year beginning on the 6th day of April, 1935, upon such person in respect of his salary,

the amount by which the first aggregate exceeds the second aggregate may be treated as an addition in computing the amount of the income of such person assessable to income tax for the year beginning on the 6th day of April, 1936, in respect of his salary.