The document defines various types of tax years: normal, special, and transitional. A normal tax year spans 12 months from July 1 to June 30, while a special tax year ends on a date other than June 30. A transitional tax year is required when changing from a normal to a special tax year or vice versa and serves as an adjustment period.

1. TAX YEAR
Definition

2. Types of Tax Year
 Normal Tax Year
 Special Tax Year
 Transitional Tax Year

3. 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

4. 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

5. 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

6. 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

7. Question
 Please answer Q2 (a) September 2006
 Please answer Q2 (b) September 2007