Rule 12
Other Provisions Relating To Long-term Contract
(1) In cases where the income derived by any person from investment, employment or business at any time is not computed likewise in a normal income
year at any time, the amounts to be included in computing the income at that time or at the time preceding it shall be the amounts to be included as per the sum of gradual increase.
(2) In cases where the income derived by any person from business or investment at any specific time is not computed likewise in a normal income year at any time, the amounts allowed to be deducted in computing the income at that time or at the time preceding, it shall be the amounts to be deducted as per the sum of gradual increase.
(3) In determining the completion percentage of the contract mentioned in Sub-section (2) of Section 26 of the Act at any specific time, it shall be determined as follows:-
(a) In respect of a contract related with production, construction or installment or a contract on the fulfillment of the services related thereto, by comparing the amount to be deducted as per the sum of gradual increase at that time with the amount to be deducted as per the sum of gradual increase at the time when the contract expires, or
(b) In cases other than those mentioned in clause (a), as specified by the Department subject to that clause.
(4) The provisions of the long-term contract mentioned in Section 26 of the Act shall not apply to the person who is not required to submit a return of estimated tax in any income year pursuant to Section 95 of the Act.
(5) The provisions of the long-term contract mentioned in Section 26 of the Act shall apply to the following contract:-
(a) A contract related with production, construction or installment or a contract on the fulfillment of the
services related thereto, at the time of commencement of the Act, and (b) In cases other than those mentioned in clause (a), a contract as per such time and condition as specified by the Department.
year at any time, the amounts to be included in computing the income at that time or at the time preceding it shall be the amounts to be included as per the sum of gradual increase.
(2) In cases where the income derived by any person from business or investment at any specific time is not computed likewise in a normal income year at any time, the amounts allowed to be deducted in computing the income at that time or at the time preceding, it shall be the amounts to be deducted as per the sum of gradual increase.
(3) In determining the completion percentage of the contract mentioned in Sub-section (2) of Section 26 of the Act at any specific time, it shall be determined as follows:-
(a) In respect of a contract related with production, construction or installment or a contract on the fulfillment of the services related thereto, by comparing the amount to be deducted as per the sum of gradual increase at that time with the amount to be deducted as per the sum of gradual increase at the time when the contract expires, or
(b) In cases other than those mentioned in clause (a), as specified by the Department subject to that clause.
(4) The provisions of the long-term contract mentioned in Section 26 of the Act shall not apply to the person who is not required to submit a return of estimated tax in any income year pursuant to Section 95 of the Act.
(5) The provisions of the long-term contract mentioned in Section 26 of the Act shall apply to the following contract:-
(a) A contract related with production, construction or installment or a contract on the fulfillment of the
services related thereto, at the time of commencement of the Act, and (b) In cases other than those mentioned in clause (a), a contract as per such time and condition as specified by the Department.