Filing of a Consolidated ITR

February 15, 1960 BIR RULING NO. 071-60 Mr. Dante T. Lim 1 McKinley Street Tuguegarao, Cagayan S i r : Reference is made to your letter dated February 6, 1960, wherein you posed the following query: May a husband who derives his income from legal fees and his wife who derives her income from operating a retail grocery, in filing their joint income tax return, adopt the 10% optional standard deduction and the itemized standard deductions, respectively? In reply thereto, please be informed that husband and wife filing a consolidated income tax return cannot avail of both the optional standard deduction and itemized deductions at the same time. They may claim an optional standard deduction equivalent to 10% of their gross income which shall in no case exceed P1000, pursuant to Section 30(k) of the National Internal Revenue Code. For that purpose, they shall signify in their return such intention to elect the optional standard deduction otherwise, they shall be considered as having availed themselves of the itemized deductions. This irrevocable for the taxable year for which the return is made. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue