Report No. 12
Determination of Tax in Certain Special Cases
121. Determination of income-tax on income on which no income-tax is payable.-
Where there is included in the total income of any assessee any income on which no income-tax is payable by or under the provisions of this Act, he shall be entitled to a deduction, from the amount of income-tax with which he is chargeable on his total income, of an amount equal to the income-tax calculated at the average rate of income-tax on the amount on which no income-tax is payable.
[Section 17(2), part]