Finance Act, 1990

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Basis of assessment: Case V of Schedule D.

18.—(1) As respects the year 1990-91 and subsequent years of assessment, Chapter VI of Part IV of the Income Tax Act, 1967 , is hereby amended—

(a) in subsection (3) of section 81 (inserted by the Finance Act, 1969 ), by the substitution of the following paragraph for paragraph (a):

“(a) Tax under Case V of Schedule D shall be computed on the full amount of the profits or gains arising within the year of assessment.”,

(b) in subsection (1) of section 89 (as so inserted)—

(i) by the deletion of “may, on a claim being made in that behalf, be deducted from or set off, as far as may be, against the amount of profits or gains on which the person chargeable is assessed under Case V of Schedule D for that year, and any portion of the excess for which relief is not so given”, and

(ii) by the substitution of “the person chargeable” for “he”,

and

(c) in subsection (2) of section 89 (as so inserted), by the deletion of “by way of carrying forward any portion of such excess as is referred to in subsection (1)”,

and the said section 89, as so amended, is set out in the Table to this subsection.

TABLE

89.— (1) Where in any year of assessment the aggregate amount of the deficiencies, computed in accordance with section 81 (4), exceeds the aggregate of the surpluses as so computed, the excess shall be carried forward and, so far as may be, deducted from or set off against the amount of profits or gains on which the person chargeable is assessed under Case V of Schedule D for any subsequent year of assessment, and, if tax has been overpaid, the amount overpaid shall be repaid.

(2) Any relief under this section shall be given as far as possible from the first subsequent assessment, and so far as it cannot be so given then from the next assessment and so on.

(2) In respect of a person who, on or after the 6th day of April, 1991, ceases to possess the whole of a single source of profits or gains as is referred to in section 81 (2) of the Income Tax Act, 1967 , paragraphs (b) and (c) of subsection (3) of the said section 81 shall not apply or have effect.