Singapore legislation
Clause 7
Clause 7
Amendment of section 39
Section 39 (2) of the principal Act is amended by inserting, immediately after paragraph (e), the following paragraph:“(ea)has carried on a trade, business, profession or vocation and has made contributions to the Central Provident Fund on his own account, there shall be allowed a deduction, in respect of such contributions made on or after 1st August 1986, of an amount not exceeding 10% of his assessable income for that year of assessment derived from such trade, business, profession or vocation or $7,200 whichever is the less:Provided that —
where the contributions to any approved pension or provident fund or society under paragraph (e) and this paragraph do not exceed $5,000, the total deductions allowable under paragraph (e) and this paragraph shall not exceed $5,000, and where such contributions exceed $5,000 no deduction shall be allowed in respect of premiums for life insurance;
the total deductions allowable under paragraph (e) and this paragraph in respect of contributions to any approved pension or provident fund or society shall not exceed $7,200 where the deduction allowable under paragraph (e) is less than $7,200 in respect of such contributions;
no deduction shall be allowed under this paragraph where a deduction of $7,200 or more has been allowed under paragraph (e) in respect of contributions to any approved pension or provident fund or society;”.