Finance Act, 1970

Amendment of section 135 of Income Tax Act, 1967.

7.Section 135 of the Income Tax Act, 1967 , is hereby amended by the substitution of the following proviso for the proviso to subsection (1):

“Provided that—

(a) if the individual claims a deduction under this section, section 134 shall have effect in relation to the individual as if the proviso thereto (inserted by section 6 of the Finance Act, 1970) were omitted;

(b) in case the deduction of one-fourth of earned income to which the individual is entitled under section 134 is £500, there shall be no deduction under this section;

(c) in case the deduction of one-fourth of earned income to which the individual is entitled under section 134 is less than £500, the deduction under this section shall not be greater than the amount by which the deduction under section 134 falls short of £500;

(d) in case the individual is entitled under section 138 to a deduction of £249 or £274—

(i) in case his total income does not exceed £500, the deduction under this section shall be the amount by which the deduction of one-fourth of earned income under section 134 falls short of £125, and

(ii) in case his total income exceeds £500, the deduction under this section shall not be greater than £150 or the amount to which he is entitled under paragraph (c), whichever is the less;

(e) in case the individual is entitled under section 138 (1) to a deduction of £424 or £524—

(i) in case his total income does not exceed £900, the deduction under this section shall be the amount by which the deduction of one-fourth of earned income under section 134 falls short of £225, and

(ii) in case his total income exceeds £900, the deduction under this section shall not be greater than £225 or the amount to which he is entitled under paragraph (c), whichever is the less”.