Income Of Previous Year Is Not Taxable In The Immediately Following Assessment Year

Income Of Previous Year Is Not Taxable In The Immediately Following Assessment Year

There are certain situation in which income is to be taxed in the same year in which income was earned:-

Situation 1 : Shipping business of non resident ( S. 172 )

If all the following conditions are satisfied than section 172 is applicable

1. Assessee is non resident
2. He owns a ship or ship is chartered by him
3. The ship carries passenger, live stock, mail or goods and all are shipped at port in India
4. The non resident assessee may or may not have an agent or representative in India.

Deemed income

If all of the above conditions are satisfied than 7.5 % of amount received or receivable by non resident, towards fright, fare, demur-rage charges, handling charges etc.. , shall be deemed to be the income of non resident.

Situation 2: Person living India and he/she has no present intention of returning to India (s.174).

Situation 3: Association of person or body of individual, formed or established for a particular event and purpose and likely to be dissolved in the same year in which the same was established. (s.174A)

Situation 4: Person likely to transfer property to avoid tax (s.175)

Situation 5: Discontinued Business (s.176)