The Income of the Previous year is charged to tax in the immediately following Assessment year. There are certain exceptions where the income of the P. Y. is charged in the year itself i.e. in the year in which it is earned. However, the Assessing officer has the discretion to charge in the P.Y. itself or to charge it in the following Assessment year in respect of Income:
A. of Bodies formed for short duration. (Section 174A).
B. from discontinued business. (Section 176).
C. of persons leaving India with no intention of returning to India (Section 174).
D. of persons likely to transfer property to avoid tax. (Section 175).
Answer:B
The Income of the Previous year is charged to tax in the immediately following Assessment year. There are certain exceptions where the income of the P. Y. is charged in the year itself i.e. in the year in which it is earned. However, the Assessing officer has the discretion to charge in the P.Y. itself or to charge it in the following Assessment year in respect of Income:
A. of Bodies formed for short duration. (Section 174A). B. from discontinued business. (Section 176). C. of persons leaving India with no intention of returning to India (Section 174). D. of persons likely to transfer property to avoid tax. (Section 175).