INCOME TAX ACT 1967 (ACT 53)
PART III - ASCERTAINMENT OF CHARGEABLE INCOME
Chapter 3- Gross income




Section 27. Basis period to which gross income in respect of interest, etc., is related.




(1) Subject to this section where gross income from a source in Malaysia of the relevant person-

it shall when it has been received be treated as gross income of the relevant person for the relevant period.

(2) Where gross income from a source of the relevant person is gross income to which subsection (1) applies and is receivable in respect of a period (in this subsection referred to as the overlapping period) which overlaps the relevant period, that gross income when received shall be apportioned between the part of the overlapping period which overlaps the relevant period and the remaining part or parts of the overlapping period (the apportionment, unless the Director General having regard to the facts of any particular case otherwise directs, being made in the proportion that the number of days of the overlapping period that fall into the relevant period bears to the total number of days of the overlapping period) and so much of that gross income as is apportioned to the overlapping part of the overlapping period shall be treated as gross income of the relevant person from that source for the relevant period:

Provided that-


[Am. Act 578:s.8]
[Am. Act 578:s.8]
(3) Where gross income mentioned in subsection (1) becomes receivable in the relevant period and is in respect of-


subsection (2) shall not apply and that gross income shall when received be treated as gross income of the relevant person for the relevant period:

Provided that, where the relevant period wholly elapsed more than five years before the day on which the receipt of that gross income first becomes known to the Director General, that gross income shall whenever necessary be treated as gross income of the relevant person for the basis period for the year of assessment which began five years before the beginning of the year of assessment which includes that day.
[Am. Act 578:s.8]
(4) In subsection (2) "period of accrual" means a period throughout which there is no change in the rate of interest or in the principal sum in respect of which interest is payable.



Related reading:
[Act 578:s.8]


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