Finance Act, 1990

Period of computation of profits.

15.—As respects the year 1990-91 and subsequent years of assessment, the Income Tax Act, 1967 , is hereby amended by the substitution of the following section for section 60:

“60.— (1) Where, in the case of any trade or profession, it has been customary to make up accounts—

(a) if only one account was made up to a date within the year of assessment, and that account was for a period of one year, the profits or gains of the year ending on that date shall be taken to be the profits or gains of the year of assessment;

(b) if an account, other than an account to which paragraph (a) applies, was made up to a date in the year of assessment, or if more accounts than one were made up to dates in the year of assessment, the profits or gains of the year ending on that date, or on the last of those dates, as the case may be, shall be taken to be the profits or gains of the year of assessment;

(c) in any other case, the profits or gains of the year of assessment shall be determined in accordance with the provisions of subsection (1) of section 58.

(2) Where the profits or gains of a year of assessment have been computed on the basis of a period in accordance with the provisions of paragraph (b) or (c) of subsection (1) and the profits of the corresponding period relating to the immediately preceding year of assessment exceed the profits or gains charged to income tax for that year, then the profits of that corresponding period shall be taken to be the profits or gains of that preceding year of assessment and the assessment shall be amended accordingly.

(3) In the case of the death of a person who, if he had not died, would, under the provisions of this section, have become chargeable to income tax for any year of assessment, the tax which would have been so chargeable shall be assessed and charged upon his executors or administrators and shall be a debt due from and payable out of his estate.”.