No deductions are allowed in respect to—Interest on capital, or any annual payment out of profits (the tax on which should be deducted, and thus recovered from the person to whom the payment is made); sums invested or employed as capital in the trade or business, or on account of capital withdrawn therefrom; sums expended in improvement; any loss not connected with or arising out of the trade, etc.; expenses of maintenance of the person assessable, his family or private establishment; any loss recoverable under an insurance or contract of indemnity; any sum paid as income tax on profits or gains, or on the annual value of trade premises; any sum paid as salary to a partner; any sum written off for depreciation. Although no deduction for depreciation is permitted to be made by the person himself who sends in his return as to profits, he may, in such return, make a claim for an allowance in respect to wear and tear of plant[1] or machinery, which will be subject to settlement by the revenue authorities.
Schedule D (ii.): PROFITS FROM DISCOUNTS AND FROM INTEREST OF MONEY on which the Tax has not, in fact, been deducted before Receipt.—Under this head are included interest and dividends on stocks and shares, except in those cases where such interest or dividends are stated to be paid "free of income tax" or "tax free,"—which means that the tax has been, or will be, duly accounted for to the revenue authorities by the person making such payment.
The profits under this head are to be computed according to the full amount in the previous year.
Schedule D (iii.): PROFITS FROM COLONIAL AND FOREIGN SECURITIES where the Duty is not deducted by the Agent entrusted with the payment thereof.—To be computed according to the full amount received, or to be received in the current year, without any deduction.
Schedule D (iv.): PROFITS FROM COLONIAL AND FOREIGN POSSESSIONS.—To be computed according to the full amount received on the average of the three preceding years.
Schedule D (v.): PROPERTY OR PROFITS NOT COMING UNDER ANY OF THE SOURCES OF INCOME PREVIOUSLY MENTIONED, NOR THOSE SPECIFIED IN SCHEDULE E.—Such property or profits are to be computed, if certain in amount, on the profits of the previous year; or, if uncertain, on an average of years.
Schedule E: INCOME DERIVED FROM ANY PUBLIC OFFICE OR EMPLOYMENT OF PROFIT.—Liability to income tax under this head attaches to: Persons holding any parliamentary or judicial appointment, or a public office in the Civil Service; officers in the Army, Navy, Militia, or Volunteers; persons holding any Office or employment of profit in the Church, or in any public corporation, company, society, or public institution, or in any county or borough, or in any other public office or employment of profit of a public nature.
The fees, etc., may be estimated on the profits of the preceding year, or on an average of the three preceding years. Expenses wholly and necessarily incurred in the performance of the duties of the office or employment may be deducted. If the holder of any such office employs a deputy or assistant, as for instance, where a rector engages a curate, he may, of course, deduct from the salary of such assistant the income tax thereon—but if required, will have to give him a voucher showing that he has paid it.
If the employment ceases before the end of the year for which the tax has been paid, a proportionate amount may be recovered.
Returns as to Income, when required to be made.—In respect to income which falls within Schedules D or E, a return is required to be made each year upon the forms furnished for that purpose by the Surveyor of Taxes for the district. Even where there is no such income, a return stating that fact must neverthe-
- ↑ Which would include depreciation of furniture used in the business of letting furnished houses or apartments.
