In: Accounting
Section 5 of the Income Tax Act 1967 describes the ascertainment of chargeable income. Describe the steps that are used to ascertain the chargeable income of a taxpayer. (Please show the format of computing the chargeable income as well)
Manner in which chargeble income is to be ascertained
Section 5. (1) Subject to this Act,the chargeable income of a person upon which tax is chargeable for a year of assessment shall be ascertained in the following manner:
Provided that in ascertaining the chargeable income of an individual resident there shall be excluded the income consisting of interest accruing in or derived from the country and received from a person referred to in subsection 109C(4) in respect of interest paid or credited to that individual.
(2)For the purposes of this Act,any income of a person from any sources,and any adjusted loss of a person from any source or sources consisting of a business,may be ascertained for any period (including a year of assessment) notwithstanding that---