Section 28 of said Code is hereby amended to read as follows: "SEC. 28. Taxable compensation income.
Section 5
SEC. 5 Section 28 of said Code is hereby amended to read as follows: "SEC. 28. Taxable compensation income.—(a) Computation For purposes of determining the tax prescribed in section 21 (a), 'taxable compensation income' is gross compensation income as defined in paragraph (b) hereof, less the personal and additional exemptions allowed under Section 23. "(b) 'Gross compensation income' defined.—'Gross compensation income’ includes all income payments received as a result of an employer-employee relationship such as, salaries, wages, honoraria, bonuses, pensions, allowances for transportation, representation, entertainment, fees (including director's fees) and other income of similar nature, including compensation paid in kind: Provided, however, That payments made by a general professional partnership to a partner for services rendered shall not be considered as gross compensation income but as a partner's distributive share of ordinary business income. "(c) Exclusion from gross compensation income.—The following are excluded from the computation of gross compensation income: "(1) Actual, moral, exemplary and nominal damages received by the employee or his heirs pursuant to a final judgment or compromise agreement arising out of or related to an employer-employee relationship. "(2) All items excluded under paragraphs (c) (1) to (c) (8), inclusive, of Section 29."