Section 24 : Accrual basis accounting:
1) Any person shall, in maintaining accounts on the accrual basis of his income earned from business or investment subject to this Act, for purposes of tax, any income shall be included in computation of his income, considering that any payment has been received immediately when the right to receive such payment is created.

2) For purposes of making deduction from computation of income earned by any person as mentioned in Sub-section (1), the following expenses shall be deemed to have been borne:-

a) If any payment involving such expenses has been made in lieu of a payment made by any other person, the expenses shall be deemed to have been borne in the following conditions:-

(1) The person has the liability to make that person,

(2) The value of such liability can be ascertained in a proper and real manner, and

(3) Payment has been received from another person.

b) In all other circumstances except those mentioned in clause (a), an expense shall be deemed to have been borne at the time when payment is made.

3) If the tax is reduced, the Department may, in the following circumstances, and by a written notice to a person who maintains accounts on the accrual basis to compute the income earned from any investment or business, adjust the time of making payment in order to stop carrying forward or reducing income for purposes of tax:-

a) If the following circumstance occurs,-

b) If any expense could be deducted in computing the income for any income year but that person had to maintain accounts on the cash basis for tax purposes, that expense could have been deducted in any forthcoming income year,

c) Any person received any payment that has to be included only in computing the income of the coming income year but if he had to maintain accounts on cash basis for tax purposes, the amount of payment would have been included in the income year of receipt of that payment, and

d) If the receiving and making of payment by any person in any income year reduced the total amount of tax payable.

4) In computing, on the accrual basis, the income earned by any person from a business or investment, the differences that could occur in the following circumstances have to be adjusted properly in receiving or making payment:-

a) If that person includes any payment in quantity which he could receive or deducts any payment in quantity which he has to bear, and

b) If there occurs difference in the amount received or borne by receiving or making payment by that person in different quantity, because of, inter alia, difference in valuation of the currency after the performance of the act referred to in clause (a).