Finance Act, 1996
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Amendment of section 62 (trading stock of discontinued trade) of Income Tax Act, 1967. |
11.—(1) In this section— | |
“farming” has the same meaning as in Chapter II of Part I of the Finance Act, 1974 ; | ||
“specified return date for the chargeable period” has the same meaning as in section 9 of the Finance Act, 1988 . | ||
(2) As respects the year of assessment 1995-96 and subsequent years of assessment, section 62 of the Income Tax Act, 1967 , is hereby amended by the insertion in subsection (1) of the following proviso after paragraph (b): | ||
“Provided that where trading stock of a trade of farming is tranferred by a farmer (in this proviso referred to as ‘the transferor’) to another farmer (in this proviso referred to as ‘the transferee’), the transferor and the transferee may jointly elect— | ||
(i) that the provisions of this paragraph shall not apply or have effect, and | ||
(ii) that, in computing their respective profits or gains from farming, the transferor and the transferee shall include such stock at the value at which the stock is included in the accounts of the transferor at the date of discontinuance, | ||
and such election shall be made in writing on or before the specified return date for the chargeable period in which the stock is transferred.”. |