An exception to the Assessment Year
Generally, income is taxed in the subsequent year to the income year. But, in certain cases, to protect the interests of revenue, the income is taxed in the year of earning itself. Thus, in those cases, the assessment year and the income year are the same. Assessment year is the following year in which this income is assessed and taxed. It is the year in which the income that one has earned in the financial year that is just ended is evaluated. It is a period of twelve months starting from April I of every year and ending on March 31 of the next year.
The exceptions to the normal rule of assessment year are discussed as under:
(a) Income of discontinued business: Where any business or profession is discontinued in any assessment year, the income of the period from the expiry of the last income year up to the date of such discontinued may be charged to tax in that assessment year.
(b) Persons leaving Bangladesh: When it appears to the Assessing Officer that an individual may leave Bangladesh and has no intention to return, the total income of such individual for the period from the expiry of the income year in relation to the current assessment year up to the probable date.
(c) Income of non-resident shipping companies: Section 102(2) of the ITO, 1984 provides for the taxation of income of non-resident shipping companies in the year in which they earn their income in Bangladesh