Under the head Business or Profession, the method of accounting which an assessee can follow shall be:

Question

Quizplus · Accepted Answer

Under the head Business or Profession, an assessee is allowed to follow either the mercantile (accrual) system or the cash system of accounting, as per their choice or the requirements of the relevant laws and regulations. Hybrid system is not typically allowed for tax purposes as it can lead to inconsistencies in income reporting.

Under the Head Business or Profession, the Method of Accounting