Page:United States Statutes at Large Volume 47 Part 1.djvu/209

 72d CONGRESS. SESS. I. CH. 209 . JUNE 6, 1932. 185 SEC. 26. CRE DITS OF CORP ORATIO N AGAI NST NET INCOM E. INCOME TAX For the purpose only of the tax imposed by section 13 there shall poCredits allowed cor. be allowed as a credit against net income the amount received as Interest on United interest upon obligations of the United States which is included States securities. eS. in gross income under section 22. Part III-Credits Against Tax SEC. 31. TAXES OF FOREIGN COUNTRIES AND POSSESSIONS OF UNITED STATES. The amount of income, war-profits, and e xcess-pr ofits ta xes imposed by foreign countries or possessions of the United States shall be allowed as a credit against the tax, to the extent provided in section 131. SEC. 32. TAXES WITHHELD AT SOURCE. The amount of tax withheld at the source be allowed as a credit against the tax. SEC. 33. ERRONEOUS PAYMENTS. (a) CREDIT FOR OVERPAYMENTS .-For credit against the tax of overpayments of taxes imposed by this title for other taxable years, see section 322. (b) F ISCAL YEAR ENDING IN 1932 .-For credit against the tax of amounts of tax paid for a fiscal year beginning in 1931 and ending in 1932, see section 132. Part IV-Accounting Periods and Methods of Accounting SEC. 41. GEN ERAL RULE. The net income shall be computed upon the basis of the taxpayer's annual accounting period (fiscal year or calendar year, as the case may be) in ac cor da nce w ith the method of ac cou nt ing regularly employed in keeping the books of such taxpayer ; but if no such method of accounting has been so employed, or if the method employed does not clearly reflect the income, the computation shall be made in accordance with such method as in the opinion of the Commissioner does clearly reflect the income. If the taxpayer's annual accounting period is other than a fiscal year as defined in section 48 or if the taxpayer has no annual accounting period or does not keep books, the net income shall be computed on the basis of the calendar year. (For use of inventories, see section 22(c) .) SEC. 42. PERIOD IN WHICH ITEMS OF GROSS INCOME INCLUDED. The amount of all items of gross income shall be included in the gross income for the taxable year in which received by the taxpayer, unless, under methods of accounting permitted under section 41, any such amounts are to be properly accounted for asofa different per iod. SEC. 43. PERIOD FOR WHICH DEDUCTIONS AND CR EDI TS TAKEN. The deductions and credits provided for in this title shall be taken for the taxable year in which "paid or accrued" or "paid or in- curred ", dependent upon the method of accounting upon the basis of which the net income is computed, unless in order to clearly reflect the income the deductions or credits should be taken as of a different period. SEC. 44. INS TAL LME NT BASIS. (a) DEALERS IN PERSONAL PROPERTY .-Under regulations pre- scribe d by the Commiss ioner wi th the a pproval of the S ecretary, a person who regularly sells or otherwise dis poses of persona l property on the installment plan may return as income therefrom in any tax- Credits against tax . Taxes of foreign coun. tries, etc. Extent of credit for. Post, p. 211. Taxes withheld at source. under section 143 shall Credit for. Post, p. 215. Erroneous pay ments. Credit for overpay- ments. Post, p. 742. Credit for fisc al year ending in 1932. Post, p. 213. Accounting periods and methods. General rule. Net income on basis of annual accounting per iod. If no accounting perio d, on cal end ar year. Inventories. Ante, p. 179. Gross income. Items for taxable year in which received . Deductions and credi ts. For taxable year in which "paid or ac- crued" or "paid or in- cur red ." Insta llmen t ba sis . Dealers in personal property may make returns on, of payments actually received.