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Minimum Tax on Income (Sec. 113)
12-23-2010, 01:24 PM
Post: #16
 
1[74. Tax year.¡ª (1) For the purpose of this Ordinance and subject to this
section, the tax year shall be a period of twelve months ending on the 30th day of
June (hereinafter referred to as #8215;normal tax year¡Â) and shall, subject to subsection
(3), be denoted by the calendar year in which the said date falls.
(2) Where a person¡Âs income year, under the repealed Ordinance, is
different from the normal tax year, or where a person is allowed, by an order
under sub-section (3), to use a twelve months¡ period different from normal tax
year, such income year or such period shall be that person¡Âs tax year (hereinafter
referred to as #8215;special tax year¡Â) and shall, subject to sub-section (3), be denoted
by the calendar year relevant to normal tax year in which the closing date of the
special tax year falls.
2[(2A) The 3[Board], ¡ª
(i) in the case of a class of persons having a special tax year
different from a normal tax year may permit, by a notification in
the official Gazette, to use a normal tax year; and
1 Substituted by the Finance Act, 2002. The substituted section 74 read as follows
¨D74. Tax year.- (1) For the purposes of this Ordinance and subject to this section, the tax year
shall be the period of twelve months ending on the 30th day of June (referred to in this section as
the financial year).
(2) A person may apply, in writing, to use as the person¡Âs tax year a twelve-month period
(hereinafter referred to as a ¨Dspecial year¡¬) other than the financial year and the Commissioner
may, subject to sub-section (4), by notice in writing, approve the application.
(3) A person granted permission under sub-section (2) to use a special year may apply, in
writing, to change the person¡Âs tax year to the financial year or to another special year and the
Commissioner may, subject to sub-section (4), by notice in writing, approve such application.
(4) The Commissioner may approve an application under sub-section (2) or (3) only if the
person has shown a compelling need to use a special year or to change the person¡Âs tax year and
any approval shall be subject to such conditions as the Commissioner may prescribe.
(5) The Commissioner may, by notice in writing to a person, withdraw the permission to
use a special year granted under sub-section (2) or (3).
(6) A notice served by the Commissioner under sub-section (2) shall take effect on the
date specified in the notice and a notice under sub-section (3) or (5) shall take effect at the end of
the special year of the person in which the notice was served.
(7) Where the tax year of a person changes as a result of sub-section (2), (3) or (5), the
period between the last full tax year prior to the change and the date on which the changed tax
year commences shall be treated as a separate tax year, to be known as the ¨Dtransitional year¡¬.
(8) In this Ordinance, a reference to a particular financial year shall include a special year
or a transitional year of a person commencing during the financial year.
(9) A person dissatisfied with a decision of the Commissioner under sub-section (2), (3)
or (5) may challenge the decision only under the appeal procedure in Part III of Chapter X.¡¬
2 Added by the Finance Act, 2004.
3 The words ¨DCentral Board of Revenue¡¬ substituted by the Finance Act, 2007.
98
(ii) in the case of a class of persons having a normal tax year may
permit, by a notification in the official Gazette, to use a special
tax year.]
(3) A person may apply, in writing, to the Commissioner to allow him to
use a twelve months¡ period, other than normal tax year, as special tax year and
the Commissioner may, subject to sub-section (5), by an order, allow him to use
such special tax year.
(4) A person using a special tax year, under sub-section (2), may apply
in writing, to the Commissioner to allow him to use normal tax year and the
Commissioner may, subject to sub-section (5), by an order, allow him to use
normal tax year.
(5) The Commissioner shall grant permission under sub-section (3) or
(4) only if the person has shown a compelling need to use special tax year or
normal tax year, as the case may be, and the permission shall be subject to such
conditions, if any, as the Commissioner may impose.
(6) An order under sub-section (3) or (4) shall be made after providing to
the applicant an opportunity of being heard and where his application is rejected
the Commissioner shall record in the order the reasons for rejection.
(7) The Commissioner may, after providing to the person concerned an
opportunity of being heard, by an order, withdraw the permission granted under
sub-section (3) or (4).
(8) An order under sub-section (3) or (4) shall take effect from such
date, being the first day of the special tax year or the normal tax year, as the
case may be, as may be specified in the order.
(9) Where the tax year of a person changes as a result of an order
under sub-section (3) or sub-section (4), the period between the end of the last
tax year prior to change and the date on which the changed tax year commences
shall be treated as a separate tax year, to be known as the ¨Dtransitional tax year¡¬.
(10) In this Ordinance, a reference to a particular financial year shall,
unless the context otherwise requires, include a special tax year or a transitional
tax year commencing during the financial year.
(11) A person dissatisfied with an order under sub-section (3), (4) or (7)
may file a review application to the 1[Board], and the decision by the 2[Board] on
such application shall be final.]
1 The words ¨DCentral Board of Revenue¡¬ substituted by the Finance Act, 2007.
2 The words ¨DCentral Board of Revenue¡¬ substituted by the Finance Act, 2007.
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