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Basis of assessment.
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77.—(1) Tax under Case III of Schedule D shall, subject to the provisions of this section, be computed—
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(a) as respects the year of assessment in which the profits or income first arise, on the full amount of the profits or income arising within that year; and
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(b) as respects subsequent years of assessment, on the full amount of the profits or income arising within the year preceding the year of assessment:
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Provided that—
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(i) where the profits or income first arose on some day in the year preceding the year of assessment other than the 6th day of April, the computation shall be made on the profits or income of the year of assessment; and
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(ii) where the profits or income first arose on the 6th day of April in the year preceding the year of assessment, or on some day in the year next before the year preceding the year of assessment other than the 6th day of April, the person charged shall be entitled, on giving notice in writing to the inspector at any time within twelve months after the end of the year of assessment, to be charged on the amount of the profits or income of that year, and if the tax charged has been paid, any amount overpaid shall be repaid.
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(2) Tax shall, subject to the provisions of section 76, be paid on the actual amount computed as aforesaid without any deduction.
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(3) If in any year of assessment any person charged or chargeable in respect of income or profits under Case III of Schedule D ceases to possess the whole of such single source of income or profits as is mentioned in section 75 (1) or any of the sources the income of which is directed to be separately computed under subsection (2) of that section, section 58 (5) shall, subject to the necessary modifications, apply in any such case as if the cesser of the possession of such single source or separate sources, as the case may be, were the discontinuance of a trade.
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(4) The references in subsection (3) to a person ceasing to possess a source of income or profits shall be construed as referring to a cesser occurring by reason of the person dying while in possession of the source of income or profits as well as to a cesser occurring in the lifetime of such person, and for the purposes of subsection (3) such death shall be deemed to cause a cesser, and such cesser shall be deemed to take place on the day of such death.
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(5) The provisions of subsection (1) shall, in cases where income tax is to be computed by reference to the amount of income received in the State, have effect as if references therein to income which arises or which arose were references to income which is or was so received.
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