Report No. 12

87. Other incomes.-

Income-tax shall not be payable by an assessee in respect of the following amounts which are included in his total income-

(i) the interest received on any security of the Central Government issued or declared to be income-tax free;

[Section 8, 2nd proviso]

(ii) the interest received on any security of a State Government issued income-tax free, the income-tax whereon shall be payable by the State Government;

[Cf. section 8, 3rd Proviso] [New]

(iii) if the assessee is a partner of an unregistered firm, any portion of the assessee's share in the profits and gains of the firm computed in the manner laid down in section 69 [16(1)(b)1 on which income-tax has already been paid by the firm;

[Section 14(2)(a)]

(iv) if the assessee is a partner of a registered firm, the amount which represents the difference between-

(a) the assessee's share in the total income of the firm, and

(b) his share in such total income as reduced by the income-tax, if any, payable by the firm.

the shares in either case being computed in the manner laid down in section 69 [16(1) (b)1; and

[Section 14(2)(aa)]

(v) if the assessee is a member of an association of persons, other than a Hindu undivided family, a company or a firm, any portion of the amount which he is entitled to receive from the association on which income-tax has already been paid by the association.

[Section 14(2)(b)]