https://www.taxtmi.com/article/detailed?id=13205 Advance receipts for services that are non refundable are taxable in the year of receipt and must be included in total income when received. Reliance on the accounting "matching principle" or AS 9 to defer recognition is misplaced where tax law governs inclusion on receipt. Provisions addressing remission or cessation of liabilities do not convert non refundable advance receipts into deferred taxable income, and point-of-taxation rules in other statutes are distinct statutory carve-outs; accrual accounting acceptance must yield to the income inclusion principle for non refundable advances. en-us Fri, 13 Dec 2024 07:24:45 +0530 Fri, 13 Dec 2024 07:24:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=13205 Advance receipts for services that are non refundable are taxable in the year of receipt and must be included in total income when received. Reliance on the accounting "matching principle" or AS 9 to defer recognition is misplaced where tax law governs inclusion on receipt. Provisions addressing remission or cessation of liabilities do not convert non refundable advance receipts into deferred taxable income, and point-of-taxation rules in other statutes are distinct statutory carve-outs; accrual accounting acceptance must yield to the income inclusion principle for non refundable advances. Articles Income Tax Fri, 13 Dec 2024 07:24:45 +0530 https://www.taxtmi.com/article/detailed?id=13205