Section 276 — Method of accounting

Old Act equivalent: Section 145 of IT Act 1961 Sub-part: B.—Supplementary provisions

Statutory Text

  1. 	(1) Income chargeable under the head “Profits and gains of business or 
    	 	 	profession” or “Income from other sources” shall, subject to the provisions of 
    

sub-section (2), be computed as per either cash or mercantile system of accounting
regularly employed by the assessee. (2) The Central Government may notify income computation and disclosure stan­ dards to be followed by any class of assessees or in respect of any class of income. (3) The Assessing Officer may make an assessment in the manner provided in section 271, where—

(a) he is not satisfied about the correctness or completeness of the accounts of the assessee; or

(b) the method of accounting provided in sub-section (1) has not been reg­ ularly followed by the assessee; or

(c) income has not been computed as per the standards notified under sub-section (2).

Method of accounting in certain cases.

Provisos

None.

Explanations

None.

Key Structure

  • Applies to: [Verification Pending]
  • Conditions: [Verification Pending]
  • Time limits: [Verification Pending]
  • Monetary limits: [Verification Pending]
  • Exceptions: [Verification Pending]

Cross-References

Amendment Notes

None noted from the extracted pages.

Practical Notes