The rule that the income of the
previous year is taxable as the income of the immediately following assessment
year has certain exceptions. These are:
1.
Income of non-residents from shipping subject
to following conditions
a) Assessee should be Non
Resident(NR).
b) Assessee should own a Ship or Chartered by NR.
c)
Business
of carrying passengers, livestock, mail or goods shipped at a port in India.
d) The NR may (may not) have an agent in India.
2.
Income of persons leaving India either
permanently or for a long period of time subject to following conditions
a) It appears to the Assessing Officer that an Individual may leave India during the current Assessment Year(A.Y.) or shortly
thereafter.
b) He has no present intention of returning to India.
c) The total income upto the probable date of his departure from India shall be chargeable to tax in that A.Y.
3.
Income of bodies formed for short duration
subject to following conditions
a)
There
is an Association Of Persons(AOP) or a Body Of Individuals(BOI) or an
artificial judicial person, formed or established or incorporated for a particular event or
purpose.
b)
It
appears to the Assessing officer(A.O.) that it is likely to get dissolved in
the A.Y. in which it is formed or immediately after such A.Y.
4.
Income of a person trying to alienate his
assets with a view to avoiding payment
of tax
a) It appears to the A.O. during any current Assessment Year that
a person is likely to charge, sell, transfer, dispose of any of his asset.
b)
Such
asset may be movable or immovable.
c) The intention is to avoid tax liablity ; and
5.
Income of a discontinued business.
In
these cases, income of a previous year may be taxed as the income of the
assessment year immediately proceeding the normal assessment year. These exceptions have been incorporated in
order to ensure smooth collection of income
tax from the aforesaid taxpayers who may not be traceable if tax assessment
procedure is postponed till the commencement of the normal assessment.