55 STAT.] 77TH CONG. , 1ST SESS.-CH. 412-SEPT. 20, 1941 purpose of carrying out the provisions of this chapter as the Com- missioner with the approval of the Secretary may by regulations prescribe- "(1) Every individual having a gross income for the taxable year of $750 or over, if single, or if married and not living with husband or wife; "(2) Every individual having a gross income for the taxable year of $1,500 or over, if married and living with husband or wife; "(3) Every estate the gross income of which for the taxable year is $750 or over; "(4) Every trust the net income of which for the taxable year is $100 or over, or the gross income of which for the taxable year is $750 or over, regardless of the amount of the net income; and "(5) Every estate or trust of which any beneficiary is a non- resident alien." (c) INFORMATION RETuRNs.-Section 147 (a) of the Internal Rev- enue Code (relating to information at the source) is amended by striking out "$800" wherever occurring therein and inserting in lieu thereof "$750". SEC. 113. CREDIT FOR DEPENDENTS. Section 25 (b) (2) of the Internal Revenue Code (relating to credit for dependents) is amended to read as follows: "(2) C rEDIT FOR DEPENDENTS.-- "(A) Allowance in General.- $400 for each person (other than husband or wife) dependent upon and receiving his chief support from the taxpayer if such dependent person is under eighteen years of age or is incapable of self-support because mentally or physically defective. "(B) Exception for Certain Heads of Families.-If the taxpayer would not occupy the status of head of a family except by reason of there being one or more dependents for whom he would be entitled to credit under subparagraph (A), the credit under such subparagraph shall be disallowed with respect to one of such dependents. SEC. 114. NONINTEREST-BEARING OBLIGATIONS ISSUED AT DIS- COUNT. Section 42 of the Internal Revenue Code (relating to period in which items of gross income are included) is amended by inserting before the first sentence thereof "(a) GENERAL RULE. -", and by inserting at the end of such section a new subsection to read as follows: "(b) NONINTEREST-BEARING OBLIGATIONS ISSUED AT DISCOUNT.- If, in the case of a taxpayer owning any noninterest-bearing obligation issued at a discount and redeemable for fixed amounts increasing at stated intervals, the increase in the redemption price of such obliga- tion occurring in the taxable year does not (under the method of accounting used in computing his net income) constitute income to him in such year, such taxpayer may, at his election made in his return for any taxable year beginning after December 31, 1940, treat such increase as income received in such taxable year. If any such election is made with respect to any such obligation, it shall apply also to all such obligations owned by the taxpayer at the beginning of the first taxable year to which it applies and to all such obligations thereafter acquired by him and shall be binding for all subsequent taxable years, unless upon application by the taxpayer the Commis- 697 53 Stat. 64; 54 Stat. 520. 26U.S .§ 147(a). 53 Stat. 18. 26U.S.C. 25(b) (2). 53 Stat. 24 . 26U.8.C. 42.
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