Page:United States Statutes at Large Volume 48 Part 1.djvu/712

 686 INCOME TAX. Surtax on individ- uals-Contd. Rates-Contd. Personal holding companies. Post, p. 751 . Evasion by corpora- tions. Post, p. 702. Tax on corporations. Rate. Exempt corpora- tions. Post, p. 700. Personal holding companies. Post, p. 751. Accumulating sur- plus to avoid surtax. Post, p. 702. COMPUTATION OF NET INCOME. Net income, defined. Gross income. General definition. Compe nsati on of President, United States judges. 73d C ONGRESS. SESS. II. CH. 277. MAY 10, 1934. $54,000 upon surtax net incomes of $150,000 ; and upon surtax net incomes in excess of $150,000 and not in excess of $200,000, 53 per centum in addition of such excess. $80,500 upon surtax net incomes of $200,000 ; and upon surtax net incomes in excess of $200,000 and not in excess of $300,000, 54 per centum in addition of such excess. $134,500 upon surtax net incomes of $300,000 ; and upon surtax net incomes in excess of $300,000 and not in excess of $400,000, 55 pe r centum in addi tion of such exc ess. $189,500 upon surtax net incomes of $400,000 ; and upon surtax net incomes in excess of $400,000 and not in excess of $500,000, 56 per centum in addition of such excess. $245,500 upon surtax net incomes of $500,000 ; and upon surtax net incomes in excess of $500,000 and not in excess of $750 .000, 57 pe r centum in addi tion of such exc ess. $388,000 upon surtax net incomes of $750,000 ; and upon surtax net incomes in excess of $750,000 and not in excess of $1,000,000, 58 per centum in addition of such excess. $533,000 upon surtax net incomes of $1,000,000 ; and upon sur- tax net inc omes in excess o f $1,000 ,000, 59 per cen tum in a ddition of such excess. (c) TAX ON PE RSON AL HOL DIN G C OMP ANIE S .-For surtax on per- sonal holding companies, see section 351. (d) AVOIDA NCE OF SURT AXE S BY INCORPORATION.-For surta x on corporations which accumulate surplus to avoid surtax on stock- holders, see section 102. SEC. 13. TAX ON CORPORATIONS. (a) RAT E OF TA x .-There shall be levied coll ected, and paid for e ach t axable year upon the net income o1 every corporation, a tax of 133/ 4 per centum of the amount of the net income in excess of the credit against net income provided in section 26. (b) EXEMPT CORPORATIO NS. -F o r corporations exempt from tax, see section 101. (c) TAX ON PE RSON AL HOL DIN G C oMP ANIE s .-For surtax on pe r- sonal holding companies, see section 351. (d) IMPROPER ACCUMULATION OF SuRPLi7S.-For surtax on co r- porations which accumulate surplus to avoid surtax on stockholders, see section 102. Pa rt 11- Comp uta tio n of Net Income SEC. 21. NET INCOME. " Net income " m eans the gro ss income co mput ed u nder sec tion 22, less the deductions allowed by section 23. SEC. 22. GR OSS INCOME. (a) GENERAL DEFINITION. -" Gross income" includes gains, profits, and income derived from salaries, wages, or compensation for personal service, of whatever kind and in whatever form paid, or fr om pr ofessi ons, vocat ions, trade s, bu siness es, c ommer ce, or sales, or dealings in property, whether real or personal, growing out of the ownership or use of or interest in such property ; also from interest, rent, dividends, securities, or the transaction of any business carried on for gain or profit, or gains or profits and income derived from any source whatever. In the case of Presidents of the United States and judg es of co urts of the Unit ed State s taking office after June 6, 1932, the compensation received as such shall be included