Section 3
SEC. 3. Paragraphs (a), (b) and (c) of Section 23 of the National Internal Revenue Code are hereby amended to read as follows: “(a) Personal exemptions of single individuals. The sum of Three thousand pesos, if the person making the return is a single person or a married person judicially decreed as legally separated from his or her spouse. “(b) Personal exemption of married persons or heads of family. The sum of Six thousand pesos, if the person making the return is a married man or a married woman, or Four thousand five hundred pesos if the person making the return is the head of a family: Provided, That only one exemption of Six thousand pesos shall be made from the aggregate income of both husband and wife when not legally separated. For the purpose of this section, the term “head of the family” means an unmarried man or woman with one or both parents, or with one or more brothers or sisters, or with one or more legitimate, recognized natural, or adopted children living with and dependent upon him or her for their chief support where such brothers, sisters, or children are not more than twenty-one years of age, unmarried, and not gainfully employed, or where such children are incapable of self-support because of mental or physical defect. “(c) Additional exemption for dependents. The sum of Two thousand pesos for each legitimate, recognized natural or adopted child wholly dependent upon and living with the taxpayer if such dependents are not more than twenty-one years of age, unmarried and not gainfully employed or incapable of self-support because of mental or physical defect. The additional exemption under this subsection shall be allowed only if the person making the return is either married or head of the family: Provided, however, That the total number of dependents for which additional exemptions may be claimed shall not exceed four dependents: Provided, further, That an additional exemption of One thousand pesos shall be allowed for each child who otherwise qualified as dependent prior to January 1, 1980.”