§ 21. Mr. HANNONasked the Financial Secretary to the Treasury whether Income Tax is deducted monthly at the source from the salaries of such civil servants as come within the scope of the Income Tax Acts; and whether, in arriving at the amounts so deducted, any allowance is made by way of compensation for the interest which would accrue thereto if the tax were paid half-yearly in the ordinary way?
Mr. GRAHAMUnder the Rules of Schedule E of the Income Tax Acts, Income Tax chargeable by way of departmental assessment anon established civil servants is recoverable by deduction from the official pay, made at such times in each year as the emoluments are payable. In the majority of eases, the salaries of civil servants are payable quarterly and tax is deductible in quarterly instalments; in certain Departments, however, salaries are payable monthly and are, accordingly, subject to monthly deduction of tax. The reply to the second part of the hon. Member s question is in the negative, the provisions for the payment of Income Tax in two instalments having no application to the case of departmental assessments.