Meaning of tax terms

Meaning of “Accruing”

Posted on by Prashant Thakur

Case Name : Assam roller flour mills Vs. CIT

Citation : [1996] 88 taxman 153 (raj.)

Court :Rajasthan high court

Section : 37(1)

Meaning : In the mercantile system of accountancy, income is charged to tax and liability is allowed as deduction on the basis of ‘accrual’ or ‘arisal’. The two words ‘accruing’ or ‘arising’ are used in contradistinction to the words ‘receive’ or ‘pay’.

Prashant Thakur

The author has spent more than 30 years in the field of taxation. Wrote four books -3 on on Indian Tax Law and 1 on US tax law for cryptocurrency. Apart from https:taxworry.com , he also writes on https://irstaxapp.com which is for US tax laws. He is a tech enthusiast and manages a cloud computing company that publishes innovative software.

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