Clause 2

Section 10C of the Income Tax Act (referred to in this Act as the principal Act) is amended by deleting subsections (1C) and (1D) and substituting the following subsections:“(1C) Notwithstanding subsection (1)(a), where on or after 1st January 2003, contributions are made by any employer for any year to the medisave account of an employee maintained under the Central Provident Fund Act (Cap. 36) in lieu of hospitalisation or outpatient medical benefits which the employer is obliged to provide by reason of a contract of employment, such contributions up to $1,500 for that year shall, subject to subsections (1D) and (1E), not be deemed to be income accruing to the employee.(1D) Where contributions referred to in subsection (1C) are made in respect of an employee by 2 or more employers for any year, the amount of such contributions not deemed to be income accruing to the employee shall not exceed $1,500 for that year.”.