INCOME TAX ACT 1967 (ACT 53) PART III - ASCERTAINMENT OF CHARGEABLE INCOME Chapter 7- Chargeable income
Section 48. Deduction for children.
(1) Subject to this section, where an individual who is resident for the basis year for a year of assessment-
(a) pays (wholly or in part) in that basis year for the maintenance at any time in that basis year of an unmarried child who at any time in that basis year is under the age of eighteen years;
[Am. Act A476:s.10]
(b) pays (wholly or in part) in that basis year-
(i) for the maintenance at any time in that basis year of an unmarried child who at any time in that basis year is receiving full-time instruction at any university, college, school or other similar educational establishment; or
(ii) for that instruction;
(c) pays (wholly or in part) in that basis year for the maintenance at any time in that basis year of an unmarried child (in subparagraphs (i) to (ii) referred to as the child) who at any time in that basis year is serving under articles or indentures with a view to qualifying in a trade or profession or-
(i) pays (wholly or in part) in that basis year for any part-time education which is received by the child at any time in that basis year and relates to that trade or profession;
(ii) pays (wholly or in part) in that basis year on behalf of the child any premium payable under or in connection with those articles or indentures; or
(iii) makes in that basis year on behalf of the child any other payment payable under or in connection with those articles or indentures; or
(d) pays (wholly or in part) in that basis year for the maintenance at any time in that basis year of an unmarried child if it is proved to the satisfaction of the Director General that the child is physically or mentally disabled,
[Am. Act 476:s.10]
there shall be allowed for that year of assessment in respect of the child the appropriate deduction, if any, specified in subsection (2):
Provided that where a wife living together with her husband is assessed separately for any year of assessment on her income, she may elect in writing that the appropriate deduction be wholly allowed to her for that year of assessment.
[Subs. Act 544:s.7]
(2) The appropriate deduction referred to in subsection (1) is-
[Am. Act A451:s.6; Act 476:s.10
]
(a) in respect of children falling under paragraph (1)(a) to (c), eight hundred ringgit for each child;
[Am. Act 531:s.11]
(b) in respect of children falling under paragraph (1) (d), five thousand ringgit for each child.
(3) Where for a year of assessment any individual is entitled under paragraph (1)(b) or (c) to a deduction (in this subsection referred to as the ordinary deduction)-
[Subs. Act 513:s.9]
(a) in respect of a child over the age of eighteen years and is receiving instruction at any educational establishment mentioned therein or is serving under articles or indentures with a view to qualifying in a trade or profession (in this subsection referred to as receiving further education) but not including a child receiving instruction at any school, then, if that individual satisfies the Director General that he has directly expended in that basis year for that year of assessment a sum or sums exceeding the ordinary deduction on the maintenance of that child or in making any payment in connection with that child's further education, there shall be allowed in substitution for the ordinary deduction, a deduction equal to the total sum or sums so expended but not exceeding-
(i) four times the amount of the ordinary deduction if that child is receiving further education in Malaysia;
(ii) four times the amount of the ordinary deduction if that child commenced receiving further education in a place outside Malaysia at any time in the basis year for the year of assessment 1994 or at any time in the basis year for any prior year of assessment; or
(iii) twice the amount of the ordinary deduction if that child commenced receiving further education in a place outside Malaysia beginning from 1 January 1994 to 16 October 1997.
[Subs. Act 578:s.12]
(b) where that individual is resident in East Malaysia for that basis year, in respect of a child who for the whole or part of that basis year is receiving full-time instruction at a school or other educational institution in West Malaysia and who commenced receiving such instruction in the basis year for the year of assessment 1994 or in the basis year for any prior year of assessment, then that individual shall be entitled to, in substitution for the ordinary deduction, the deduction in respect of a child receiving further education in Malaysia referred to in paragraph (a).
[Subs. Act 513:s.9]
(4) Where two or more individuals are each entitled to claim a deduction for a year of assessment under this section for a payment made in respect of the same child, there shall be allowed to each of those individuals, in place of the whole deduction which would otherwise be allowed under this section, a reduced deduction which, in the case of any one of those individuals, shall bear the same proportion to that whole deduction as the payment made by that individual bears to the total of the payments made by all those individuals.
[Am. Act A226:s.19]
(5) A deduction shall not be allowed to an individual under this section for a year of assessment in respect of any child whose total income, wherever derived or accruing, for that year exceeds the amount of the deduction that would otherwise be allowed under this section to that individual in respect of that child.
(6) For the purpose of determining whether an individual is resident in East Malaysia for the basis year for a particular year of assessment within the meaning of subsection (3), section 7 (other than paragraph (1) (c) thereof) shall apply with the modification that references to Malaysia in that section shall be taken to be references to East Malaysia.
(7) (Repealed by Act 531:s.11).
(8) (Repealed by Act A226:s.19).
(9) In this section "child", in relation to an individual or his wife, means a legitimate child or step-child of his or his wife, or a child proved to the satisfaction of the Director General to have been adopted by the individual or his wife in accordance with any law.
[Shall have effect for the year of assessement 2004 and subsequent years of assessment]
(4) Where two or more individuals are each entitled to claim a deduction for a year of assessment under this section for a payment made in respect of the same child, there shall be allowed to each of those individuals, in place of the whole deduction which would otherwise be allowed under this section, a reduced deduction of fifty per cent of that whole deduction .
