Sir W. Davidsonasked the Chancellor of the Exchequer under what circumstances family allowance paid to British officers in the Indian Army by the Indian Government are included in the computation of their total income for the purposes of a British Income Tax claim for proportionate relief in respect of their British taxed income, while family allowances paid to officers in the British Army are not subject to Income Tax.
§ Sir J. AndersonFamily allowances paid by the Government of India to British officers in the Indian Army form part of their income on which Indian Income Tax is paid and are properly taken into account, together with any other income from sources abroad in computing the proportionate relief to which my hon. Friend refers. Family and other allowances paid to members of the British Forces are not in general charged to tax in present circumstances, but, as my predecessor stated in a reply which he gave to the hon. Member for Gravesend (Sir I. Albery) on 10th February, 1942, the position in this respect will have to be reviewed after the war. The inclusion of the Indian family allowances for determination of proportionate relief does not, of course, bring 1289W those allowances under charge to our Income Tax.