Section 176 - Discontinued business

Discontinuance of business: post-discontinuance receipts treated as taxable income in the year of receipt if attributable.

Where a business or profession is discontinued, the Assessing Officer may charge to tax in that assessment year the income from the end of the previous year up to discontinuance, assessing each completed previous year or part separately; the discontinuing person must notify the Assessing Officer within fifteen days. Post-discontinuance receipts that would have been taxable if received before discontinuance are deemed the recipient's income in the year of receipt. The Assessing Officer may issue statutory notices requiring information and returns and may demand return submission within not less than seven days; tax under this section is additional to other tax liabilities.