C the last day of the relevant previous year is more than seventy years of age is exempt from payment of this additional incometax. Section 280B defines, amongst other expressions, "adjusted total income," a percentage of which is by the Second Schedule liable to be deposited as annuity deposit. Annuity deposit has to be made in advance on the adjusted total income of the preD vious year, at the rate or rates prescribed by any Central Act. Authors, play-wrights, artists, musicians and actors are permitted to make at their option, deposit up to 25 3 of the amount derived from their profession, in addition to the amount which they are required to make. A person receiving gratuity from his E employer in excess of the amount exempt from income-tax has the option of making an annuity deposit not exceeding 50% of the amount of gratuity chargeable to income-tax, in addition to the amount he is required to make. The annuity deposit is repayable in ten annual equated instalments of principal and interest at such rates as may be prescribed. The amount of F annuity deposit payable by a taxpayer in any year is admissible as a deduction in computing his total income charged to tax for that year. If the adjusted total income of an assessee includes income chargeable to income-tax under the head "salaries", allowance has to be made in computing the income under that head, and if there be no income under that head or the annuity G deposit required to be made exceeds the salary income, the whole of the balance of the annuity deposit is allowable as a deduction in computing the total earned income. The instalment of annuity due on any annuity deposit 1s chargeable to income-tax as earned income of the taxpayer in the year in which it becomes due. The Income-tax Officer on or II after the 1st day of April in the financial year, may by order irr writing, require the depositor who has been previously assessed to make an advance deposit computed in accordance with
