Finance Act, 1974

Amendment of section 77 of Income Tax Act, 1967.

45.Section 77 (3) of the Income Tax Act, 1967 , is hereby amended by the substitution for “subsection (2)” of “subsection (2) or (4)” and the said section 77 (3), as so amended, is set out in the Table to this section.


(3) If in any year of assessment any person charged or chargeable in respect of income or profits under Case III of Schedule D ceases to possess the whole of such single source of income or profits as is mentioned in section 75 (1) or any of the sources the income of which is directed to be separately computed under subsection (2) or (4) of that section, section 58 (5) shall, subject to the necessary modifications, apply in any such case as if the cesser of the possession of such single source or separate sources, as the case may be, were the discontinuance of a trade.