BIR Ruling No. 039-62

January 31, 1962 BIR RULING NO. 039-62 Brig. Gen. Marcos G. Soliman Director, National Intelligence Coordinating Agency M a n i l a S i r : In reply to your letter dated January 30, 1962, I have the honor to inform you that if after deducting the sum of P937.50, representing your monthly pension from the Armed Forces of the Philippines only the amount of P562.50 is actually paid to you as compensation for your services as Director of the NICA, then only this amount should be included in your income tax return for purposes of the income tax, because your pension is exempt from tax in accordance with section 10-A of Republic Act No. 340 as amended by Republic Act No. 2310 which provides: "SEC. 10-A. The benefits herein granted shall not be subject to attachment, levy, execution or any tax whatsoever." However, if your pension is suspended for the duration of your employment and you receive in lieu thereof the full amount of P1,500.00 provided for by law as the salary of a director of the NICA, the entire amount should be declared in your income tax return for purposes of the income tax, for you are deemed to have temporarily waived your right to said pension. cdll Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue