Finance Act, 1978
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Amendment of section 143 (premiums on post-1916 insurances and certain other payments) of Income Tax Act, 1967s. |
2.— Section 143 of the Income Tax Act, 1967 , is hereby amended by the substitution for subsection (3) of the following subsection: | |
“(3) (a) The deduction to be made from the total income of the claimant shall be— | ||
(i) where the insurance or contract referred to in subsection (2) was made after the 21st day of May, 1953, and before the 2nd day of February, 1978, with any insurance company or friendly society, being a company or society which is registered in the State and managed and controlled therein, an amount equal to two-thirds of the premium paid by him; | ||
(ii) in any other case an amount equal to one-half of the premium paid by him or, as the case may be, of the sum paid by him or deducted from his salary or stipend. | ||
(b) Where an individual claims relief under this section in respect of— | ||
(i) an insurance or contract referred to in subsection (2) to which paragraph (a) (ii) applies and which was made before the 2nd day of February, 1978, or | ||
(ii) a sum (being a sum referred to in subsection (1) (b)) to whose payment, or deduction from his stipend or salary, the individual was, prior to the 2nd day of February, 1978, and is, liable, | ||
and any of his taxable income is chargeable to tax at one or more of the higher rates, he shall be entitled to have the amount of the tax payable by him reduced so as not to exceed an amount equal to the aggregate of the two following amounts— | ||
(I) the amount of the tax that would have been payable by him if the deduction from his total income in respect of the insurance or contract or of the said sum had been two-thirds of the premium paid by him or, as the case may be, of the said sum, and | ||
(II) an amount representing tax at the standard rate on one-sixth of the premium paid by him in respect of such insurance or contract or, as the case may be, of the said sum.”. |