Page:United States Statutes at Large Volume 56 Part 1.djvu/833

 77TH CONG. , 2n SESS.-CH. 619-OCT. 21, 1942 (b) RULES FOR APPLICATION Or SECTION 400. -Section 401 is amended to read as follows: "SEC. 401 . RULES FOR APPLICATION OF SECTION 400. "For the purposes of this supplement- "(a) DEFINITIONS.- "(1) 'Married person' means a married person living with husband or wife on July 1 of the taxable year. "(2) 'Dependent' means a person (other than husband or wife) dependent upon and receiving his chief support from the tax- payer on July 1 of the taxable year if on such date such depend- ent person is under eighteen years of age, or is incapable of self-support because mentally or physically defective, excluding as a dependent, in the case of a head of a family, one who would be excluded under section 25 (b) (2) (B). A payment to a wife which is includible under section 22 (k) or section 171 in the gross income of such wife shall not be considered a payment by her husband for the support of any dependent. "(b) MARRIED AND NOT LIING WITH HUSBAND OR WIFE. - An indi- vidual not a head of a family and not living with husband or wife on July 1 of the taxable year shall be treated as a single person." (c) TAXPAYERS INELIGIBLE.- Section 404 is amended to read as follows: "SEC. 404. CERTAIN TAXPAYERS INELIGIBLE. "This supplement shall not apply to a nonresident alien individual to an estate or trust, to an individual filing a return for a period of less than twelve months or for any taxable year other than a calendar year, or to a married individual married and living with husband or wife at any time during the taxable year whose spouse files return and computes tax without regard to this supplement. SEC. 105. TAX ON CORPORATIONS. (a) NORMAL TAX. - (1) DEFINITION OF NORMAL-TAX NET INCOME.-Section 13 (a) (2) (relating to the definition of corporation normal-tax net income) is amended to read as follows: "(2) NORMAL-TAX NET INCOME. -The term 'normal-tax net income' means the adjusted net income minus the credit for income subject to the tax imposed by Subchapter E of Chapter 2 provided in section 26 (e) and minus the credit for dividends received provided in section 26 (b)." (2) ALTERNATIVE RATE. -Section 13 (b) (2) (relating to alter- native normal-tax rate) is amended to read as follows: " (2) ALTERNATIVE TAX (CORPORATIONS WITH NORMAL-TAX NET INCOME OVER $25,000, BUT NOT OVER $50,000). - A tax of $4,250 , plus 31 per centum of the amount of the normal-tax net income in excess of $25,000." (b) SURTAX ON CORPORATIONS. -Section 15 (relating to surtax on corporations) is amended to read as follows: "SEC. 15. SURTAX ON CORPORATIONS. "(a) CORPORATION SURTAx NET INCOME. -For the purposes of this chapter, the term 'corporation surtax net income' means the net income minus the credit for income subject to the tax imposed by Subchapter E of Chapter 2 provided in section 26 (e) and minus the credit for dividends received provided in section 26 (b) (computed 56 STAT.] 53 Stat. 863 . 26U.S.C.i13(a) (2). "Normal-tax net In- come." Pst, p. 806. Pot,p . 807. 53 Stt. 864. 26 U. 8. C., 8upp.I, 13I(b) (2). 55 stat. 6. 26U. . C., Spp.I, Pt, p. 8. Pod, p. 807. 805 Ante, p. 803 . 65 Stat. 691. 26U.S.C., SuppI, 1401. "Married person." "Dependent. " 55 Stat. 697. 26 U.. C., Supp. I, 25 (b) (2) (B). Post. pp. 81, 817. 55 Stat. 692. 26U. .C., Supp.I. juw.

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