§ Viscount WOLMER
asked the Secretary of State for India whether he is aware that, by Section 17 of the Finance Act, 1919, officers' gratuities are exempted from Income Tax, and that the provision is retrospective; whether he is aware that gratuities paid to British officers who have served in Mesopotamia and India have been charged with Indian Income Tax; and whether he proposes to take any steps in the matter?
§ Mr. MONTAGU
The Government of India have issued instructions exempting wound and injury and war gratuities from Indian Income Tax. The instructions have been sent home, but have not yet reached me. When they do, I will specially examine what is said about retrospective effect, so as to secure that the full privileges granted by the Finance Act are allowed in India.