parents, in the order named in the case of a male pensioner, or the dependent minor children, in the case of a female pensioner, shall receive not less than $12.50 per month, the balance to be reserved for the pensioner, to be expended in the purchase of such articles as may be required for the pensioner's welfare and which are not provided from the regular Hospital funds, or otherwise for the pensioner's benefit, subject to provision for payment of board.

$301.9 Disposition of funds in excess of $25 per month. The basic rate of pension being in excess of $25 per month, the dependent wife, minor children, or parents, in the order named in the case of a male pensioner, or the dependent minor children in the case of a female pensioner, shall receive an amount equal to one-half of the entire pension, the balance to be reserved for the pensioner, to be expended in the purchase of such articles as may be required for the pensioner's welfare and which are not provided from the regular Hospital funds, or otherwise for the pensioner's benefit, subject to provision for payment of board.

§301.10 Amount available for disbursement to a nondependent relative. If the wife, minor children, or parents of a male pensioner, or the minor children of a female pensioner, be not in fact dependent upon the pensioner in any degree for support, she or they shall receive no greater than one-half of the amount payable in case of her or their dependence, the balance to be reserved for the pensioner, to be expended in the purchase of such articles as may be required for the pensioner's welfare and which are not provided from regular Hospital funds, or otherwise for the pensioner's benefit, subject to provision for payment of board.

$301.11 Use of fund where there are no relatives of certain classes. If there be no wife, minor children, or parents, in the case of a male pensioner, or minor children in the case of a female pensioner, the entire amount of the pension shall be reserved for the pensioner, to be expended in the purchase of such articles as may be required for the pensioner's welfare and which are not provided from the regular Hospital funds, or otherwise for the pensioner's benefit, subject to provision for payment of board.

§ 301.12 Disposition of balance of fund in case of discharge or death. Any unexpended balance of pension money reserved for the pensioner's benefit shall be paid, in the event of the pensioner's discharge from the Hospital, to the pensioner, or to his or her lawful guardian, or in the event that the pensioner is returned to a branch of the National Home for Disabled Volunteer Soldiers (now a part of the Veterans' Administration), to the treasurer or fiscal officer of such branch for such pensioner, or in the event of the pensioner's discharge from the Hospital and his immediate transfer to the United States Soldiers' Home, to the treasurer of said home. In the event of the pensioner's death while an inmate of the Hospital, the same shall be paid, in the case of a male pensioner, to his widow, or if there be no widow, to his minor children, and in the case of a female pensioner, to her minor children. If there be no widow or minor children entitled to payment of such balance of pension money, it shall be applied to the general uses of the Hospital.

§ 301.13 Question affecting the rights of claimants for share of pension of inmates. All questions affecting the right of claimants for a share of the pension of inmates of the Hospital shall be determined upon evidence to be submitted to the United States Veterans' Administration. The findings of the United States Veterans' Administration upon such evidence shall be submitted for the approval of the Federal Security Administrator, and upon their transmission to the Superintendent of the Hospital with such approval, shall be accepted

by him to control the disbursement of the pension under the law and the regulations in this part.

§301.14 Table of monthly division of rates of pension made part of regulations. The following "Table of monthly division of rates of pension under the acts of February 20, 1905, and February 2, 1909," is hereby made a part of the regulations in this part to serve as a guide in determining in each case the respective amounts to be reserved for the pensioner's benefit and to be paid to relatives entitled. Any unusual rates of pension not included will be divided as nearly as may be in the same proportions as therein observed.

Indians: Instruc

tion, education, medical care, relief, social work.

TITLE 25-INDIANS

§ 13. Expenditure of appropriations by Bureau of Indian Affairs. The Bureau of Indian Affairs, under the supervision of the Secretary of the Interior, shall direct, supervise, and expend such moneys as Congress may from time to time appropriate, for the benefit, care, and assistance of the Indians throughout the United States for the following purposes:

General support and civilization, including education.

For relief of distress and conservation of health.

For industrial assistance and advancement and general administration of Indian property.

§ 271. Employment of instructors for Indians.

[See 25 U.S.C. 271.]

§ 452. Contracts for education, medical attention, relief and social welfare of Indians.

[See 25 U.S.C. 452.]

Use of existing Gov- § 453. Same; use of Government property by States and Terri

ernment facilities.

tories.

[See 25 U.S.C. 453.]

134

TITLE 26-INTERNAL REVENUE CODE

COMPUTATION OF TAXABLE INCOME

PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME

§ 104. Compensation for injuries or sickness. (a) In general.

Except in the case of amounts attributable to (and not in excess of) deductions allowed under section 213 (relating to medical, etc., expenses) for any prior taxable year, gross income does not include (1) amounts received under workmen's compensation acts as compensation for personal injuries or sickness;

(2) the amount of any damages received (whether by suit or agreement) on account of personal injuries or sickness;

(3) amounts received through accident or health insurance for personal injuries or sickness (other than amounts received by an employee, to the extent such amounts (A) are attributable to contributions by the employer which were not includible in the gross income of the employee, or (B) are paid by the employer); and

(4) amounts received as a pension, annuity, or similar allowance for personal injuries or sickness resulting from active service in the armed forces of any country or in the Coast and Geodetic Survey or the Public Health Service.

§ 105. Amounts received under accident and health plans. (a) Amounts attributable to employer contributions.

cal expenses.

Except as otherwise provided in this section, amounts received by Exclusions for median employee through accident or health insurance for personal injuries or sickness shall be included in gross income to the extent such amounts (1) are attributable to contributions by the employer which were not includible in the gross income of the employee, or (2) are paid by the employer.

(b) Amounts expended for medical care.

Except in the case of amounts attributable to (and not in excess of) deductions allowed under section 213 (relating to medical, etc., expenses) for any prior taxable year, gross income does not include amounts referred to in subsection (a) if such amounts are paid, directly or indirectly, to the taxpayer to reimburse the taxpayer for expenses incurred by him for the medical care (as defined in section 213 (e)) of the taxpayer, his spouse, and his dependents (as defined in section 152).

(c) Payments unrelated to absence from work.

Gross income does not include amounts referred to in subsection (a) to the extent such amounts

(1) constitute payment for the permanent loss or loss of use of a member or function of the body, or the permanent disfigurement, of the taxpayer, his spouse, or a dependent (as defined in section 152), and (2) are computed with reference to the nature of the injury without regard to the period the employee is absent from work.

(d) Wage continuation plans.

Gross income does not include amounts referred to in subsection (a) if such amounts constitute wages or payments in lieu of wages for a period during which the employee is absent from work on account of personal injuries or sickness; but this subsection shall not apply to the extent that such amounts exceed a weekly rate of $100. In the case of a period during which the employee is absent from work on account of sickness, the preceding sentence shall not apply to amounts attributable to the first 7 calendar days in such period unless the employee is hospitalized on account of sickness for at least one day during such period. If such amounts are not paid on the basis of a weekly pay period, the Secretary or his delegate shall, by regulations, prescribe the method of determining the weekly rate at which such amounts are paid.

(e) Accident and health plans.

For purposes of this section and section 104

(1) amounts received under an accident or health plan for employees, and

(2) amounts received from a sickness and disability fund for employees maintained under the law of a State, a Territory, or the District of Columbia,

shall be treated as amounts received through accident or health in

surance.

(f) Rules for application of section 213.

For purposes of section 213 (a) (relating to medical, dental, etc., expenses) amounts excluded from gross income under subsection (c) or (d) shall not be considered as compensation (by insurance or otherwise) for expenses paid for medical care.

§ 106. Contributions by employer to accident and health plans. Gross income does not include contributions by the employer to accident or health plans for compensation (through insurance or otherwise) to his employees for personal injuries or sickness.

Personal exemptions, blind.

PART V—DEDUCTIONS FOR PERSONAL EXEMPTIONS

§ 151. Allowance of deductions for personal exemptions.

(d) Additional exemption for blindness of taxpayer or spouse. (1) For taxpayer.

An additional exemption of $600 for the taxpayer if he is blind at the close of his taxable year.

(2) For spouse.

An additional exemption of $600 for the spouse of the taxpayer if a separate return is made by the taxpayer, and if the spouse is blind and, for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer. For purposes of this paragraph, the determination of whether the spouse is blind shall be made as of the close of the taxable year of the taxpayer; except that if the spouse dies during such taxable year such determination shall be made as of the time of such death. (3) Blindness defined.

For purposes of this subsection, an individual is blind only if his central visual acuity does not exceed 20/200 in the better eye with correcting lenses, or if his visual acuity is greater than 20/200 but is accompanied by a limitation in the fields of vision such that the