Page:United States Statutes at Large Volume 56 Part 1.djvu/839

 56 STAT.] 77TH CONG., 2D SESS.-CH. 619-OCT. 21, 1942 SEC. 112. AMENDMENTS TO CONFORM INTERNAL REVENUE CODE WITH THE PUBLIC DEBT ACT OF 1941. 811 55 Stat. 7. 31U.S.C..SuoD.L §§ 742a-7570 .' (a) POSTAL SAVINGS CERTIFICATES.-Section 22 (b) (4) (relating Ante, p. 190. to the exclusion of tax-free interest from gross income) is amended 2 Statz& g2 by inserting after the words "other than postal savings certificates of (4). deposits" the following: "to the extent they represent deposits made before March 1, 1941". (b) UNITED STATES OBLIGATIONS.- Section 25 (a) (1) is amended ^tt i2 to read as follows: . "(1) INTEREST ON UNITED STATES OBLIGATIONS. -The amount received as interest upon obligations of the United States, if such interest is included in gross income under section 22, and if, 26 ta. 9. under the Act authorizing the issue of such obligations, as Ante, pp. 808, post, pp. 812, 814 amended and supplemented, such interest is exempt from normal 818i82i, 830,8; tax." (c) The amendments made by this section shall be effective as of Efective date. March 1, 1941. SEC. 113. EXCLUSION OF PENSIONS, ANNUITIES, ETC, FOR DISABIL- ITY RESULTING FROM MILITARY SERVICE. Section 22 (b) (5) (relating to exclusions from gross income of compensation for injuries or sickness) is amended by inserting before the semicolon at the end thereof the following: ", and amounts received as a pension, annuity, or similar allowance for personal injuries or sickness resulting from active service in the armed forces of any country". SEC. 114. EXCLUSION OF INCOME FROM DISCHARGE OF INDEBTED- NESS. (a) GENERAL RumLE-Section 22 (b) (9) (relating to exclusion from gross income of corporate income derived from discharge of indebted- ness) is amended to read as follows: "(9) INCOME FROM DISCHARGE OF INDEBTEDNESS.-In the case of a corporation, the amount of any income of the taxpayer attrib- utable to the discharge, within the taxable year, of any indebted- ness of the taxpayer or for which the taxpayer is liable evidenced by a security (as hereinafter in this paragraph defined) if the taxpayer makes and files at the time of filing the return, in such manner as the Commissioner, with the approval of the Secretary by regulations prescribes, its consent to the regulations prescribed under section 113 (b) (3) then in effect. In such case the amount of any income of the taxpayer attributable to any unamortized premium (computed as of the first day of the taxable year in which such discharge occurred) with respect to such indebted- ness shall not be included in gross income and the amount of the deduction attributable to any unamortized discount (com- puted as of the first day of the taxable year in which such dis- charge occurred) with respect to such indebtedness shall not be allowed as a deduction. As used in this paragraph the term 'security' means any bond, debenture, note, or certificate, or other evidence of indebtedness, issued by any corporation. This para- graph shall not apply to any discharge occurring before the date of enactment of the Revenue Act of 1939, or in a taxable year beginning after December 31,1945." 53 Stat. 10. 26U. ..C. 22(b) (5). Post, p . 826. 53 Stat. 875. 26U.S. .. 22 (b) (9). 53 8tat. 87 . 26U.8.C. 113(b) (3). "Security." 53 Stat. 862 2 (bi 5 (a) 80; 816 i/ra.

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