Page:United States Statutes at Large Volume 49 Part 1.djvu/1711

 1666 7 4TH C ONGRESS. SESS. II. CH. 690. JUNE 22, 1936. Credits again st tax. Part III-Credits Against Tax Taxes of foreign coun- SEC. 31. TAXES OF FOREIGN COUNTR IES AND POS SESSI ONS OF tries and u. S. posses- signs. UNIT ED STAT ES. Extent of credit for. The amount of income war-profits, and excess-profits taxes Posy,p.1696. imposed by foreign countries or ossesions of the United States shall be allowed as a credit against the tax, to the extent provided in section 131. Taxes withheld at SEC. 32. TAX ES WIT HHEL D AT SOURCE. so urce. Post, pp. 1700,1702. The amount of tax withheld at the source under section 143 or 144 shal l be a llowed as a credit agains t the tax. Overpayments. SEC. 33. CREDIT FOR OVERPAYMENTS. Post, p. 1731 . For credit against the tax of overpayments of taxes imposed by this title for other taxable years, see section 322. A ccou nti ng perio ds and methods. Part IV-Accounting Periods and Methods of Accounting General rule. SEC. 41. GE NER AL RULE. p Net one basis o of The net income shall be computed upon the basis of the taxpayer's annual accounting pe- annual accounting period (fiscal year or calendar year, as the case riod . may be) in accordance with the method of accounting regularly employed in keeping the books of such taxpayer ; but if no such method Gf 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 If accounting period Commissioner does clearl reflect the income. If the tax a er's is other than fiscal 3r p 3r year. 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 AnteP° Inventories. of the calendar year. (For use of inventories, see section 22 (c) .) Gross i ncome. SEC. 42, PERIOD IN WHICH ITEMS OF GROSS INCOME INCLUDED. Ite ms for taxable The amount of all items of gross income shall be included in the year in which r eceive d. 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 as of a different deathtion' in case of period. In the case of the death of a taxpayer there shall be included in compu ting net income for the taxab le period in wh ich falls the date of his death, amounts accrued up to the date of his death if not otherwise properly includible in respect of such period or a prior pe riod. Deductions and cr ed- SEC. 43. PERIOD FOR WHICH DEDUCTIONS AND CREDITS TAKEN. Its. For taxable year in The deductions and credits (other than the dividends paid credit whic h pa id or ac- crued", or " paid or in- prov ided in section 27) provided f or in this tit le shall be tak en curred . 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 inc ome the deducti ons or credits should be take n as of Allowances on death of ta xpayer. a different period. In the case of the death of a taxpayer there shall be allowed as deductions and credits for the taxable period in which falls the date of his death, amounts accrued up to the date of his death if not otherwise properly allowable in respect of such period or a prior period