Accounting periods not coinciding with year of income etc.
(1)
Where a person usually makes up the accounts of his business for
a period of twelve months ending on a day other than 31st December, then, for
the purpose of ascertaining his total income for a year of income, the income of
an accounting period ending on that other date shall, subject to such adjustment
as the Commissioner may consider appropriate, be taken to be income of the
year of income in which the accounting period ends -- (a) in the case of a person other than an individual, as regards all income charged under section 3; and
- (b) in the case of an individual, as regards all income charged under that section other than gains or profits from employment or services rendered.
(1B) A person seeking the approval of the Commissioner under subsection (1A) shall apply in writing to the Commissioner at least six months before the date to which the accounts are intended to be made up.
(1C) The Commissioner shall within
(1D) Where the Commissioner does not comply with subsection (1C), the application shall be deemed allowed. FA 2025-wef 1st July-2025 S17).
(2)
Where a person makes up the accounts of his business for a period
greater or less than twelve months, the Commissioner may, subject to such
adjustment as he may consider appropriate, including the assessment for a year
of income which, but for any alteration in the date to which the accounts of the
business are made up, would have been assessed for that year of income, treat
the income of that accounting period as income of the year of income in which
the accounting period ends, and tax shall be charged accordingly.(3)
The accounting period of a person carrying on any unincorporated business shall be the period of twelve months ending on 31st December each
year, and(4)
Any person to whom subsection (3) applies shall not later than 31st
December, 1998 change the accounting date to comply with the provisions of
that subsection.Previous Next
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