Show 00 op 4 4 I INCOME TAX FACTS I I NO 22 Since Interest paid may roily be bo deducted from gross Income It follows that In- In Interest interest In Interest terest received Is subject to the In- In Income income In Income come tax and nd should be Included In gross groes Income of ot the tha recipient In Interest In- In terest teres need not be bo received In but It Is constructively received when it I Is credited or held hold subject to call callas as In the case of ot savings DanK canK deposits and bonds Tho The Interest on certaIn securities such uch as United States Statu bonds bond before September 2 1917 the obligations of a state otate territory or any political subdivision thereof Or ortho ortho I Ithe the tho DIstrIct District of ot Columbia and ties ties Issued under the Feder Federal l tarn tarm bali act Is entirely exempt from the Income tax as Is also Interest credited to postal savings sa accounts on moneys money deposited In postal savings bank Interest which Is not taxable how how- how aver over must be reported as Indicated bi b questions on the Income tax ax return returns Bonds Donds of private corporations oper- oper operating oper operating sting public utilities and the bonds bon 3 of foreign governments pre uro not exempt The rhe Interest upon United States bonds of ot the First Liberty loan and au prior Issues and upon the tha 3 a per cell cent Victory notes is wholly exempt from norm and surtax All other States bonds are exempt n from the normal t tax X but the tho surtax applies to Interest upon any of such bonds 01 1 In excess of oC o certain amounts of prin- prin principal prin principal cipal as provided for Cor by the rel re rev re dt l 0 act |