HARRY W. NICE, GOVERNOR. 51

enable him to make the return, and that the same is, to the
best of his knowledge and belief, true and correct.

(2) Fiduciaries required to make returns under this sub-
title shall be subject to all the provisions of this sub-title
which apply to other taxpayers.

(3) Fiduciary returns shall be filed within the time re-
quired by this sub-title for the filing of individual returns, and
for failure to file returns in time, fiduciaries shall be subject
to the same penalties as individuals.

(4) The returns required by this section shall be handled in
the same manner as returns are handled for individuals.

246. PARTNERSHIP INCOME. Individuals carrying on busi-
ness in partnership shall be liable for income tax only in their
individual capacity, and no income tax shall be assessable
hereunder upon the net income of any partnership. All such
income shall be assessable to the individual partners; it shall
be reported by such partners as individuals upon their respec-
tive individual income returns and it shall be taxed to them
as individuals along with their other income at the rate and
in the manner herein provided for the taxation of income
received by individuals. There shall be included in computing
the net income of each partner his distributive share, whether
distributed or not, of the net income of the partnership for the
taxable year; or if his net income for such taxable year is
computed upon the basis of a period different from that upon
the basis of which the net income of the partnership is com-
puted, then his distributive share of the net income of the part-
nership for any accounting period of the partnership ending
within the taxable year upon the basis of which the partner's,
net income is computed.

247. ALLOCATION OF CORPORATE INCOME. 1. Interest, divi-
dends, rent and royalties, not received in connection with the
transaction of business and gains from the sale of property
not held, owned or used in connection with business (less
related expenses, if any) shall be allocated to this State if
received from sources within this State, and if received from
sources outside of this State, such income shall be allocated
outside the State; and the balance hereinafter referred to as
business income shall be allocated to this State and shall be
taxable as hereunder set forth. Gains or losses by domestic
corporations from the sales of securities issued by foreign
governments or by corporations organized under the laws
thereof shall be allocated to this State.

2. If the trade or business of the corporation is carried on
entirely within the State, the tax shall be imposed on the entire