INCOME TAX ACT 1967 (ACT 53) PART IX - EXEMPTIONS, REMISSION AND OTHER RELIEF
Section 127. Exemptions from tax: general.
(1) Notwithstanding any other provision of this Act, but subject to section 127A any income specified in Part I of Schedule 6 shall, subject to this section, be exempt from tax.
[Subs. Act 337: s.15; Am. Act 608:
s.18]
(2) The Dewan Rakyat may by resolution delete any paragraph or item in Schedule 6 or add further paragraphs or items thereto.
(3) The Minister may by statutory order-
(a) provide that the interest payable on any loan charged on the Consolidated Fund or on a State Consolidated Fund shall be exempt from tax, either generally or in respect of interest payable to persons of a particular class;
(b) exempt any person or class of persons from all or any of the provisions of this Act, either generally or in respect of any income of a particular kind or any class of income of a particular kind;
(c) declare any part of the armed forces to be a reserve force for the purposes of paragraph 9 of Part I of Schedule 6 in addition to the forces mentioned in that paragraph; or
(d) vary paragraph 18 of Part I of Schedule 6 by adding other commodities to those mentioned in that paragraph or deleting any of the commodities so mentioned.
(4) Any orders made under subsection (3) shall be laid before the Dewan Rakyat.
(5) Any income which is exempt from tax by virtue of this section shall be disregarded for the purposes of this Act:
Provided that-
(a) this subsection shall not apply as respects section 107A, 108, 109 or 109B; and
[Am. Act 293: s.21]
(b) any tax deducted under section 107A, 108, 109 or 109B, from any such income shall be refunded under section 111.
[Am. Act 293: s.21]
(6) Nothing in this section shall be so construed as to exempt in the hands of a recipient any income in respect of dividend, interest, bonus, salary or wages paid wholly or in part out of income exempt from tax by virtue of this section, unless that first-mentioned income is itself so exempt.
