BIR Ruling

July 14, 1969 The Action Line c/o The Manila Times P. O. Box 775, Manila Gentlemen : This refers to the letter addressed to your column by Mr. Arsenio Tan of No. 621 Estraude St., Binondo, Manila, dated March 25, 1969 requesting information as to whether or not a taxpayer who has availed of the 10% optional standard deduction in his income tax return which would be filed declaring income realized during the preceding taxable year can still claim additional deductions for medicare and tuition fees in that same return. llcd In reply thereto, I have the honor to inform you that if a taxpayer signifies in his return his intention to elect the optional standard deduction, he can no longer avail himself of the itemized deductions. The optional standard deduction provided for under Section 30(k) of the Tax Code is in an amount equivalent to 10% of the taxpayer's annual gross income, but in no case higher than P1,000, and the same way be availed of by a taxpayer in lieu of all other deductions. Accordingly, if a taxpayer elects the 10% optional standard deduction, he can no longer claim additional deductions for medicare and tuition fees provided for under Section 30(a) of the Tax Code as amended by Republic Act No. 5325. The election of one kind of deduction once made in the return so filed shall be irrevocable for the taxable year for which the return is made. In other words, a taxpayer cannot avail himself of both the optional standard deduction and itemized deductions at the same time and in the same return. It should either be one or the other but never both in the same return filed for the taxable year. llcd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue