Banks, interest paid by, on deposits, deductible from their net income: PAGE 131 142 142 142 127 130 102 Betterments, no deduction for from income allowed: Corporations: Bonds and stocks, foreign, payments of interest or dividends to be dis- 149 Bonds containing tax-free covenant, withholding applies to interest ac- Bonds issued with guarantee of tax-free interest, no deduction allowed Domestic corporations 127 Foreign corporations 130 Bonds, mortgages and deeds of trust, all interest payments on must be Brokers, information by, as to customers and their profits and losses.... 147 Charitable contributions of citizens or residents are deductible from net Collection of foreign interest and dividend payments, license required for 117 Authority to grant extension of time for filing returns, in case of sick- Income accruing to political subdivisions of the United States exempted 124 Organizations and associations exempted. 122 PAGE Corporations: Credits allowed to income: Dividends from other corporations, for war income tax. Expenses .... Income defined Information as to dividends paid, and recipients thereof. Rate of income tax on corporations 2 per cent.... Rate of supplementary war income tax on corporations 4 per cent.. Undistributed profits tax on corporations.. Basis on which levied Profits actually invested exempt 147 119 118 120 121 121 Profits declared to be invested, but not actually, taxed 15 per cent.. 121 Withholding at source on foreign corporations. On dividends On income from interest on bonds Credits allowed to net income: Dividends received from other corporations, for supplementary war Courts, U. S. district, jurisdiction conferred on. Corporations: Credits and deductions allowed only in case a return of all income War profits taxes, amount of, assessed by United States for same tax- Date Act is effective..... Debts, interest on: 121 133 134 133 145 120 105 105 149 107 ..... Corporations, a proportion of interest paid is deductible from in- Debts, worthless, are deductible from income of individuals.. PAGE Interest paid on indebtedness, a proportion of.... Where debt is secured by collateral subject to sale in ordinary 126 127 127 .... 127 Losses, depreciation and exhaustion. 125 Deductions and credits of section 6 allowed to nonresident aliens only in case complete return is filed Deeds of trust, all payments of interest on must be disclosed.. 108 149 May be credited to income of corporations for supplementary war in- come tax only May be credited to income of individuals for normal tax only.. Must be included in returns Payments, corporations must furnish information regarding. 120 105 113 147 149 Stock dividends are defined as income... 150 Effective, date Act becomes Estates and trusts, income of is taxable Evasion of tax, profits not distributed for purpose of, is taxable Exempted income: Gifts and bequests Exempted associations and corporations Interest on government obligations Proceeds of life insurance policies 109 ........... Extension of time for...... Salaries of certain public officers and employees ...... Exemption granted to trustees and guardians Exemption, specific personal, of $3,000 and $4,000 from normal income tax Individuals Expenses of business, deductible from net income: Corporations Individuals ..... ... Failure to make returns or supply information, penalty for.. Fiduciaries, joint, returns by.... Filing of returns: For corporations By whom signed.. Extension of time for...... Receivers, returns by. When Where For individuals By whom When Where 131 Partnership may fix its own. 112 Fixed and determinable payments in excess of $800 must be disclosed by 148 Foreign governments, income of, exempted from tax. 150 Foreign interest and dividend payments, collectors of must have license.. 117 Improvements and betterments, no deduction from income allowed for: Corporations .125, 129 Individuals .104, 107 .120 Income shall be credited with excess profits taxes assessed for same taxable year 149 Dividends from other corporations, for supplementary war income ...... For individuals ........ ...... Dividends for normal tax only.... .....• •:•... PAGE 120 105 105 ..... Income and excess profits taxes paid during taxable year not deductible Income, definition of: For corporations For individuals Income exempted from tax: Interest of obligations of political subdivisions of United States. Income shall be credited with excess profits tax assessed for same Income shall be credited with amount on which tax has been with- 105 149 ...103, 128 119 100 102 Individuals: Proceeds of life insurance policies, gifts, and bequests. Income of trusts and estates is taxable................ Income undistributed for purpose of tax evasion is taxable.. Credits allowed to income of.... 102 102 100 101 105 Charitable contributions Dividends for normal tax only. Income tax has been withheld.. Deductions allowed to income of.. Business expenses 105 105 War profits taxes assessed for same taxable year. 149 103 103 104 104 104 103 103 Losses, other ... Taxes 104 103 Worthless debts Exemption, specific personal, allowed to citizens or residents only Married persons: Exemption of $200 for each dependent child........... Personal exemption of $2,000 from supplementary war income tax Personal exemption of $4,000 for normal tax of 2%. Tax rates on. Normal tax of 2 per cent. on income in excess of $3,000 and $4,000.. Supplementary war surtax rates on income in excess of $5,000 Unmarried persons: Personal exemption of $1,000 from supplementary war income tax of Personal exemption of $3,000 from normal tax of 2 per cent.. Applies to interest on securities containing "tax-free" covenant, ac- Applies to nonresident aliens Does not apply to dividends ..... ... |