TAX YEAR

Definition
Types of Tax Year
Normal Tax Year

Special Tax Year

Transitional Tax Year

Normal Tax Year
A period of 12 months
From July 1 to June 30
Denoted by the calendar year in which the normal
tax year ends

Example:
Tax Year 2008 = Start from July 1 2007
Ends on June 30 2008
Special Tax Year
Any income year ending
Other than June 30
Denoted by the calendar year relevant to the
normal tax year in which the year end falls
Example:
October 1 2006 to September 30 2007
What is the Tax Year for the above dates?
Tax Year 2008
Change in Tax Year
If a person wants to change his tax year
He needs permission from,
Commissioner Income Tax (CIT)

If a class of persons want to change their tax year

They needs permission from,
Federal Board of Revenue
Transitional Tax Year
If you change your tax year from
1. Normal to Special or
2. Special to Normal

You need an in between period to adjust

This in between period is called transitional tax year
Example: Normal Tax Year 1-7-2007 to
30-6-2008
Now if you want to change to 1-1-2009 to 31-12-09
Question

Please answer Q2 (a) September 2006

Please answer Q2 (b) September 2007