Clause 29

Section 35 of the principal Act is amended by deleting subsections (1) and (1A) and substituting the following subsections:“(1) Except as provided in this section, the income of any person for each year of assessment (referred to in this Act as the statutory income) shall be the full amount of his income for the year preceding the year of assessment from each source of income after the deduction provided under subsection (1A).(1A) There shall be deducted any allowance falling to be made under section 16, 17, 18A, 19, 19A, 19B, 19C or 20 that is not fully deducted and which would otherwise be added to, and deemed to form part of, the corresponding allowance for the next succeeding year of assessment under section 23(1).(1B) For the purposes of subsection (1A), the balance of allowance for the earliest year of assessment shall be deemed to have been deducted first, followed by the balance of allowance for the next earliest year of assessment, and so on.”.