Income Tax Act, 1967.

Method of estimating income for sur-tax purposes.

524.—(1) For the purposes of sur-tax, the total income of any individual from all sources shall be taken to be the total income of that individual from all sources, estimated in the same manner as the total income from all sources is required to be estimated in a return made in connection with any claim for a deduction from assessable income, but subject to the provisions hereinafter contained.

(2) Where an assessment to income tax has become final and conclusive for the purposes of income tax, the assessment shall also be final and conclusive in estimating total income from all sources for the purposes of sur-tax, and no allowance or adjustment of liability on the ground of diminution of income or loss shall be taken into account in estimating the total income from all sources, unless that allowance or adjustment has been previously made in respect of income tax on an application under the special provisions of this Act relating thereto.

(3) In estimating the income for the purpose of sur-tax—

(a) there shall be deducted in respect of any land on which income tax is charged upon the annual value estimated otherwise than in relation to profits (in addition to any other deduction), any sum by which the assessment is reduced for the purposes of collection, or on which income tax has been repaid under the provisions of this Act in respect of the cost of maintenance, repairs, insurance, and management; and

(b) any income which is chargeable with income tax by way of deduction shall be deemed to be income of the year in which it is receivable, and any deductions allowable on account of any annual sums paid out of the property or profits of the individual, shall be allowed as deductions in respect of the year in which they are payable, notwithstanding that the income or the annual sums, as the case may be, accrued in whole or in part before that year.

(4) In estimating the total income of any individual for the purpose of sur-tax, the amount of any earned income shall be taken to be the full amount of that income without the deduction of any allowance under section 134.