INCOME TAX ACT 1967 (ACT 53) PART III - ASCERTAINMENT OF CHARGEABLE INCOME Chapter 4- Adjusted income and adjusted loss
Section 37. Special provisions applicable to adjusted income from occupation of premises for non-business purposes.
(1) Subject to this section, where a person's gross income from a source consisting of his occupation of premises has been ascertained in accordance with section 31 for the basis period for a year of assessment, section 33 shall not apply and that person's adjusted income from that source for that period shall be an amount ascertained by deducting from that gross income expenses of the following kind:
(a) any interest payable by him for that period, being interest payable on moneys borrowed by him and laid out in the acquisition by him of the premises or any interest in the premises;
(b) any rent, public rates or insurance premiums payable by him for that period in respect of the premises; and
(c) any expenses incurred during that period for the repair or maintenance of the premises (excluding expenses of a capital nature and expenses incurred in connection with the upkeep of land attached to the premises for use by way of amenity as garden or grounds).
(2) In the application of subsection (1) in relation to a person's gross income from his occupation of premises and to the basis period for a year of assessment, if the occupation is for the whole of that period and if an item consisting of interest of the kind mentioned in subsection (1) (a) or rent, rates or a premium of the kind mentioned in subsection (1) (b) is payable for a period (in this subsection referred to as the overlapping period) which overlaps the basis period, the amount of that item shall be apportioned between the part of the overlapping period which overlaps the basis period and the remaining part or parts of the overlapping period (the apportionment being made in the proportion that the number of days of the overlapping period which fall into the basis period bears to the total number of days of the overlapping period) and so much of the amount of that item as is apportioned to the overlapping part of the overlapping period shall be deducted from that gross income.
(3) In the application of subsection (1) in relation to a person's gross income from his occupation of premises and to the basis period for a year of assessment, if the occupation is for a particular part of the basis period, then-
(a) if an item consisting of interest of the kind mentioned in paragraph (1) (a) or rent, rates or a premium of the kind mentioned in paragraph (1) (b) is payable for that particular part or for any part of that particular part, the amount of that item shall be deducted from that gross income;
(b) if such an item is payable for a period (in this subsection referred to as the overlapping period) which overlaps that particular part, the amount of that item shall be apportioned between the part of the overlapping period which overlaps that particular part of the basis period and the remaining part or parts of the overlapping period (the apportionment being made in the proportion that the number of days of the overlapping period which fall into that particular part of the basis period bears to the total number of days of the overlapping period) and so much of that amount as is apportioned to the overlapping part of the overlapping period shall be deducted from that gross income; and
(c) in the case of expenses of the kind mentioned in paragraph (1) (c), those expenses shall be restricted to such of those expenses as were incurred during that particular part of the basis period.
(4) In the application of subsection (1) in relation to a person's gross income from his occupation of premises and to the basis period for a year of assessment, if that person is a lessee of the premises, then, in relation to his gross income from the occupation of those premises, no deduction may be made under subsection (1), (2) or (3) in respect of the whole or any part of-
(a) rates or premiums of the kind mentioned in paragraph (1) (b); or
(b) expenses of the kind mentioned in paragraph (1)(c).
