54 STAT.] 76TH CONG. , 3D SESS.-CH. 419-JUNE 25, 1940 SEC. 5. WITHHOLDING OF TAX AT SOURCE. (a) Section 143 of the Internal Revenue Code is amended by striking out "10 per centum" wherever occurring therein and inserting in lieu thereof "15 per centum". (b) Section 144 of the Internal Revenue Code is amended by striking out "except that in the case of dividends the rate shall be 10 per centum, and" and by striking out "of 10 per centum". (c) The amendments made by this section shall take effect on June 26, 1940. SEC. 6. PERSONAL EXEMPTION. (a) Section 25 (b) (1) of the Internal Revenue Code is amended to read as follows: "(1) PERSONAL EXEMPTION.- In the case of a single person or a married person not living with husband or wife, a personal exemption of $800; or in the case of the head of a family or a married person living with husband or wife, a personal exemption of $2,000. A husband and wife living together shall receive but one personal exemption. The amount of such personal exemption shall be $2,000. If such husband and wife make separate returns, the personal exemption may be taken by either or divided between them." (b) Section 214 of the Internal Revenue Code (relating to personal exemption of nonresident alien individuals) is amendedby striking out "$1,000" and inserting in lieu thereof "$800". (c) Section 251 (f) of the Internal Revenue Code (relating to personal exemption of citizens entitled to benefits of section 251) is amended by striking out "$1,000" and inserting in lieu thereof "$800". SEC. 7 . RETURNS OF INCOME TAX. (a) INDIVIDUAL RETuRNS.- Section 51 (a) of the Internal Revenue Code is amended to read as follows: "(a) REQUIREMENT.- T he following individuals shall each make under oath a return stating specifically the items of his gross income and the deductions and credits allowed under this chapter and such other information for the purpose of carrying out the provisions of this chapter as the Commissioner with the approval of the Secretary may by regulations prescribe- "(1) Every individual who is single or who is married but not living with husband or wife, if having a gross income for the taxable year of $800 or over. "(2) Every individual who is married and living with husband or wife, if no joint return is made under subsection (b) and if- "(A) Such individual has for the taxable year a gross income of $2,000 or over, and the other spouse has no gross income; or "(B) Such individual and his spouse each has for the taxable year a gross income and the aggregate gross income is $2,000 or over. (b) FIDUCIARY RETURNs.-Section 142 (a) of the Internal Revenue Code is amended to read as follows: "(a) REQUIREMENT OF RETURN. - Every fiduciary (except a receiver appointed by authority of law in possession of part only of the prop- erty of an individual) shall make under oath a return for any of the following individuals, estates, or trusts for which he acts, stating spe- cifically the items of gross income thereof and the deductions and credits allowed under this chapter and such other information for the purpose of carrying out the provisions of this chapter as the Commis- 519 Withholding of tax at source. 53 Stat. 60, 62. 26 U. S. C., Supp. V, §§ 143,144 . Personalexemption. 53 Stat. 18. 26 U. 8. C., Supp. V,1 25 (b)(1). 53 Stat. 77. 26 U. S. C., Supp. V, § 214. 53 Stat. 80. 26 U. 8. C., Supp. V, § 251(f). Individual returns. 53 Stat. 27. 26 U. 6. C., Supp. V, 51(a). Requirement. Fiduciary returns. 53 Stat. 60 . 26 U. S. C., Supp. V, 142 (a). Requirement.
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