https://www.taxtmi.com/caselaws?id=8728 Income becomes taxable only when it accrues or arises, which requires a present enforceable right to receive it and a corresponding obligation to pay. Where remuneration is surrendered before it becomes due, no debt arises and nothing accrues; a waiver after accrual is only an application of income already earned. On the facts stated, salary was payable only at year-end, commission could arise only on completion of the year, and bonus only on declaration, and all three were forgone before the accounting year closed. The amounts therefore did not accrue or arise during that year and were not taxable. en-us Fri, 12 May 1972 00:00:00 +0530 Wed, 03 Jun 2009 11:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8728 Income becomes taxable only when it accrues or arises, which requires a present enforceable right to receive it and a corresponding obligation to pay. Where remuneration is surrendered before it becomes due, no debt arises and nothing accrues; a waiver after accrual is only an application of income already earned. On the facts stated, salary was payable only at year-end, commission could arise only on completion of the year, and bonus only on declaration, and all three were forgone before the accounting year closed. The amounts therefore did not accrue or arise during that year and were not taxable. Case-Laws Income Tax Fri, 12 May 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8728