12
INTERNAL REVENUE CODE OF 1954
PART III—CHANGES IN RATES DURING A TAXABLE YEAR Sec. 21. Effect of changes. SEC. 21. EFFECT OF CHANGES. (a) GENERAL RULE. — I f any rate of tax imposed by this chapter
changes, and if the taxable year includes the effective date of the change (unless that date is the first day of the taxable year), then— (1) tentative taxes shall be computed by applying the rate for the period before the effective date of the change, and the rate for the period on and after such date, to the taxable income for the entire taxable year; and (2) the tax for such taxable year shall be the sum of that proportion of each tentative tax which the number of days in each period bears to the number of days in the entire taxable year. (b) R E P E A L OF T A X. — For purposes of subsection (a)— (1) if a tax is repealed, the repeal shall be considered a change of rate; and (2) the rate for the period after the repeal shall be zero. (c) EFFECTIVE D A T E OF CHANGE.—For purposes of subsections (a) and (b)— (1) if the rate changes for taxable years "beginning after" or "ending after" a certain date, the following day shall be considered the effective date of the change; and (2) if a rate changes for taxable years "beginning on or after" a certain date, that date shall be considered the effective date of the change. (d) TAXABLE Y E A R S BEGINNING B E FOR E JANUARY 1, 1954, AND E N D I N G A F T E R D E C E M B E R 31, 1953.—In the case of a taxable year
beginning before January 1, 1954, and ending after December 3 1, 1953— (1) subsection (a) of this section does not apply; and (2) in the application of subsection (j) of section 108 of the Internal Revenue Code of 1939, the provisions of such code referred to in such subsection shall be considered as continuing in effect as if this subtitle had not been enacted. PART IV—CREDITS AGAINST TAX
i
Sec. 31. Tax withheld on wages. Sec. 32. Tax withheld at source on nonresident aliens and foreign corporations and on tax-free covenant bonds. Sec. 33. Taxes of foreign countries and possessions of the United States. Sec. 34. Dividends received by individuals. Sec. 35. Partially tax-exempt interest received by individuals, Sec. 36. Credits not allowed to individuals paying optional tax or taking standard deduction. Sec. 37. Retirement income. Sec. 38. Overpayments of tax.
SEC. 31. TAX WITHHELD ON WAGES. (a) W A G E WITHHOLDING FOR INCOME T A X P U R P O S E S. —
(1) IN GENERAL.—The amount withheld under section 3402 as tax on the wages of any individual shall be allowed to the recipient of the income as a credit against the tax imposed by this subtitle. § 21
�
