The income arising from securities

The interest payable as stated must be regarded to be the owner's income and not the income of any other person, whether or not it would have been subject to income tax, if the owner of any securities sells or transfers those securities and buys back or reacquires them. It occurs if the outcome of the transaction is that any interest that becomes due on securities is payable to someone other than the owner. The terms "buy back" or "repurchase" should be considered to encompass the purchase or repurchase of comparable securities, so however, that when identical securities are purchased, the owner will not have a higher income tax obligation than he would have had the original stocks been purchased again.

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Whenever a person had a beneficial interest in securities at any point during a prior year and a transaction involving those securities or an income in that year resulted in that interest being related to those securities, then the income from those securities for that year will be considered to represent that person's income, either he does not get any income or the money he does receive is less than what the income would have been even the revenue from those securities had been collected daily and distributed fairly. If the owner or the person who had a beneficial interest in the securities can demonstrate to the assessing officer's satisfaction that there has been no income tax avoidance or that any avoidance was exceptional and not systematic, the rules of this subsection will not apply.

Any other location that the person operating the business or profession claims to keep any of his books of account, other documents, or any portion of his cash, stock, or other valuable item or thing related to his business or profession is also considered to be a place where a profession is carried out, whether any professions or businesses are practised there.

An income-tax authority may only access a place of business during the times when the location is open for the purpose of conducting business or exercising a profession, and only after dawn and before sunset in the case of any other location. An income-tax authority operating pursuant to this section may, as he thinks necessary, affix identification markings to the books of account or other documents that are the subject of his inspection and create or order that copies or extracts thereof be prepared. The authority may also seize and hold any books of accounts or other papers that he has examined in his possession for however long he sees fit, provided that he justifies his actions and does not keep the books of accounts for more than 15 days.

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