Section 4
SEC. 4. The following incomes shall be exempt from the provisions of this Law: (a) The proceeds of life insurance policies paid to beneficiaries upon the death of the insured. (b) The amount received by the insured, as a return of premium or premiums paid by him under life insurance, endowment, or annuity contracts, either during the term or at the maturity of the term mentioned in the contract or upon surrender of the contract. (c) The value of property acquired by gift, bequest, devise, or descent, but the income from such property shall be included as income. (d) Interest upon the obligations of the United States . to the extent provided in the Act authorizing the issue thereof; interest upon the obligations of the Government of the Philippine Islands or any political subdivision thereof, but in the case of such obligations issued after January first, nineteen hundred and nineteen, only to the extent provided in the Act authorizing the issue thereof. DEDUCTIONS AND CREDITS ALLOWED.