Finance Act, 1985
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Amendment of section 344 (exemption of interest on certain deposits) of Income Tax Act, 1967. |
8.— Section 344 of the Income Tax Act, 1967 , is hereby amended, as respects the year 1985-86 and subsequent years of assessment, by the substitution for subsections (1) and (2) (inserted by the Finance Act, 1980 ) of the following subsections: | |
“(1) Where the total income of an individual for the year of assessment includes, or would but for this section include, any sums (in this section referred to as ‘the said sums’) paid or credited in respect of interest on— | ||
(a) deposits with a trustee savings bank or with the Post Office Savings Bank, or | ||
(b) deposits with any of the commercial banks, | ||
the said sums shall be disregarded for all the purposes of the Income Tax Acts if or in so far as the said sums do not exceed the specified amount: | ||
Provided that the provisions of this Act as regards the making by the individual of a return of his total income shall apply as if this section had not been enacted. | ||
(1A) (a) Subject to paragraph (b), in this section ‘specified amount’ means— | ||
(i) in the case of sums representing interest on deposits mentioned in paragraph (a) of subsection (1), £120: | ||
Provided that, if at any time during the year of assessment the individual was of the age of sixty-five years or upwards, ‘specified amount’, in the case of such sums, means £240; | ||
(ii) in the case of sums representing interest on deposits mentioned in paragraph (b) of subsection (1), £50: | ||
Provided that, if at any time during the year of assessment the individual was of the age of sixty-five years or upwards, ‘specified amount’, in the case of such sums, means £100. | ||
(b) The total sums to be disregarded under this section in the case of an individual shall not exceed the appropriate specified amount mentioned in paragraph (a) (i). | ||
(2) For the purposes of subsection (1) the question whether or how far the said sums exceed the appropriate specified amount shall, where by virtue of section 194 a woman's income is deemed to be her husband's, be determined separately as regards the part of his income which is his by virtue of that section and the part which is his apart from that section.”. |