FINANCIAL YEAR 1975-76
Instructions for deduction of tax at source from salary during financial year 1975-76 at the rates specified in Part III of First Schedule to Finance Bill, 1975 and Finance (Amendment) Act, 1975
Attention is invited to para 2(7) of this Ministry’s Circular No. 161, dated 22-3-1975 [Clarification 1] relating to tax relief in regard to expenditure incurred on higher education of dependent children. The Finance Act, 1975 (as finally enacted) has extended the scope of this benefit. Deduction under section 80FF will be available not only in respect of expenditure incurred on the higher education of dependent children but also in respect of such expenditure incurred on any brother or sister of the assessee wholly or mainly dependent on him and extends to a course in business management in addition to that in medicine, architecture, engineering and technology. Further to what has been indicated in para 2(7) of this Ministry’s Circular No. 161, dated 23-3-1975, an assessee will be entitled to the higher deduction of Rs. 1,000 in respect of a dependent studying for a degree or post-graduate course in business management and a deduction of Rs. 500 in respect of a dependent studying for diploma course in business management. However, where the assessee has incurred expenditure on the higher education of more than two dependents, the deduction will be allowed only in respect of two such dependents as may be chosen by him.
Circular : No. 166 [F. No. 275/12/75-ITJ], dated 9-6-1975.
