Question

Explain the rules of the determination of basis period for the year of assessment when (a)...

Explain the rules of the determination of basis period for the year of assessment when

(a) Accounts prepared for less than or more than 12 months and not ending on 31st December

(b) basis period of a person other than a company under Section 21 of the Income Act 1967

Business   Accounting   
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Answer #1

a. When Accounts prepared for less than or more than 12 months and not ending on 31st December, section 21A is applicable which states that where a set of accounts have been made up for a period of 12 months ending on a day other than 31 December, that period shall constitute the basis period for the Year of Assessment(YA) For example, for company whose accounting year ends of June 30, the YA would be from July 1 to June 30

b. Section 21 is appliable on individuals and bodies of person which states that the year of assessment for these shall always be calender year.

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