Finance Act, 1978
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Amendment of section 193 (personal reliefs on exercise of option for separate assessments) of Income Tax Act, 1967. |
3.— Section 193 of the Income Tax Act, 1967 , is hereby amended, as respects the year 1978-79 and subsequent years of assessment— | |
(a) by the substitution in subsection (2) of the following paragraphs for paragraphs (a), (aa) and (f): | ||
“(a) so far as it flows from relief under sections 138 and 141 (other than subsection (2)), section 11 of the Finance Act, 1971 , and section 8 of the Finance Act, 1974 , in the proportions of one-half and one-half, | ||
(b) so far as it flows from relief under sections 143, 145, 151 and 152, to the husband or to the wife according as he or she made the payment giving rise to the relief, | ||
(bb) so far as it flows from relief under section 12 of the Finance Act, 1967 , in the proportions in which they bore the expenditure giving rise to the relief,” and | ||
(b) by the substitution of the following subsections for subsection (7): | ||
“(7) Where an application under section 197 has effect with respect to a year of assessment, section 5 of the Finance Act, 1977 , shall apply for that year, in relation to each of the spouses concerned, as if the part of taxable income specified in that section that is to be charged to tax at any of the rates specified therein (other than the rate expressed to be chargeable on the remainder of taxable income) were one-half of the part so specified. | ||
(8) Where the part of taxable income of a spouse chargeable to tax in accordance with subsection (7) at a particular rate specified in section 5 of the Finance Act, 1977 , is less than that of the other spouse and is less than the part (hereinafter referred to as ‘the appropriate part’) of taxable income in respect of which, by virtue of subsection (7), the first-mentioned spouse is chargeable to tax at that rate, the part of taxable income of the other spouse which, in accordance with subsection (7), is to be charged to tax at that rate shall be increased by the amount by which the taxable income of the first-mentioned spouse chargeable to tax at that rate is less than the appropriate part.”. |