The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1870-08-09

- ~ SSoNS'Ni - eNN1-(i 0HS(t@Sf w.
ocdti07l, including salary or pau for
naUa5 or ciUil, or
sny other cdpGcity-rendered to The |
United States. accept that portion |
hereof from a0hich tqr Of JfUe per |
.entatns has, precious to the enactment
# this lal0, been a0ithheld upder the
authority of acts of Congress; from
PAINS and profits, a0hether divided or
10t, of all companies and partnerships,
accept Corporations. Banks, Railroads,
Insurance, &C., 10h0Se officers are GU-
'h0rized by lao to a0ithhOld and pay as
'dreS q per ceatune of dividends made,
and of interest or coupons paid by such
from profits realized e0tth-
IN tbeiyedy from saLeslof raj estate p't1'-
chased t0ttbiql three gears; from safes
of liUe stocks, sugar, gcOoL, b7ttteT, chase,
pork, beef, mutton or other meats, nay
and grain, fruits. vegetables or other
being the produce OF the eS-
tate of the person making has or her re-
turB-excluding all such produce con-
sumed directly by the family OF sucn
person; and from all income drawn
from any source whatever except mil
itary and naval pensions allowed un-
der the laws of the United States to
any person; the rental value Of the
homestead occupied by any person or
by his family; and the income received
by a minor child from which no bene-
fit accrues to the parent.
DEDUCTIONS FROM INCOME.
Sec. 8. The sum of 81, 900 from gains
and profits of each person is exempt.
Only one deduction of 81. 000is allow
ed from the aggregate income OF all
the members of any family composed
of one or both parents and one or
more minor children, or of husband
and wife; but when a wife has by law
a separate income beyond the control
of her husband and is living separate
and apart from him, such deduction
shall then be made from her income.
Trustees and guardians may make the
$1,000 deduction from the income CT
each ward, except in the case of two
or more wards comprised In one fanl-
" having joint property interest, then
only one deduction shall be made in
their favor.
A religious or social community,
holding property in common, is allow
ed deduction of 81, 900 for each five
persons composing such community.
Sec. 9. All national, State, county
and munich BAL taxes paid within the
year, by owner, tenant or mortgage
all losses sustained during the year
from fires, food, shipwreck, or incur
red in trade and debts ascertained to
be worthless, but excluding all estima-
ted depreciation of values, interest
paid during the year, amount paid for
labor to cultivate land or to carry on
any other business from which In
come is derived, amount paid for rent
of premises occupied as a residence
amount paid for ordinary repairs OF
homestead and othor real property,
are allowed deductions. But amounts
paid for new buildings, permanent i'm
provements and betterments, are not
deductible from income.
WHO ARE TO RETURN INCOME.
Sec. IL requires every person of law
full age, whose gross income during
the preceding year exceeded two
thousand dollars, to render a return
of his income to the assistant assessor
of the district in which he resides, on
or before tho first day of March
in each year that this law is in
operation - excluding the amount
received from corporations whose off
GERS, as authorized by law, to withhold
and pay as taxes per centum of div
idends made, and of the interest or
coupons paid by such corporation.
Any person acting In any fduciary
capacity Whatever-guardian, trustee
executor, administrator, agent for and
copartner of any nonresident alien
deriving income from any business or
profession carried on in the United
States, or from rents of real estate
situated therein, shall make return
OF such income to the assistant as
SCISSOR of the district In which he re-
sides, for any person to whom he acts.
COMPANIES TO WITHHOLD TAX ON
DIVIDENDS.
Sec. Is. The officers of the fol.
lowing named companies are author
lied to withhold and pay as taxes, a
tax of two and a half per centum on
the amount of all interest or cou-
pons paid on bonds or other eviden-
ces of debts Issued and payable in
one or more years after date, and on
amount OF dividends of earnings, in
come and gains hereafter declared, by
any OF the enumerated corporations.
Dividends whenever and wherever
payable, whether to resident or nom
resident citizens or aliens, must be
taxed, and the amount OF such tax
withheld and paid by the officers of
each corporation, and the payment
to the United States of such tax shall
discharge the corporation from any
liability for that amount of said in
terest, coupons or dividends claimed
as due to any person, except in cases
where said corporations have contract
ed otherwise. The enumerated cor
poratIons required 10 withhold the
two and half per centum tax, are
banks, trust companies, saving insti-
tutons, insurance, railroad, canal and
turnpike and slackWater companies.
1t is provided that the tax upon
dividends of insurance companies
shall not be deemed due until such
dividends are payable in money or
otherwise; and that money returned
by mutual insurance companies to
their policy holders, and the annual
or semi-annual interest allowed or
palo oeposltorS In savings banks and
savings Institutions shall not be con-
sidered as dividends.
1t Is also provided that surplus
earnings of the above enumerated
corporations, which have once paid
tax, may be distributed as dividends
without further tax; and that so much
of the gains of these corporations,
which include dividends, interest or
coupons. received from other corpo-
rations, the tax upon which has been
withheld and paid, is not liable to
further tax.
The remaining sections chiefly have
reference to the duties of Assessors,
Collectors and other officers of the
Internal Revenue Department, in re-
spect to the nlodus operdRdt of assess
ing and collecting taxes, which does
not materially differ from the system
which nhtained nndar the fnrmer law