The Investors


the lag is much longer, between 5 and 6 years. Thus the 1963-64 data on corporate incomes as presented by the income tax statistics perhaps includes mainly assessments for the years 1957 and 1958. This conclusion is further strengthened by the fact that right up to 1963-64 the ratio of tax to income assessed in respect of corporations ranged between 48 and 49 per cent whereas according to company finance data the ratio declined from 18 per cent in 1957-58 to 46 per cent in 1958-59 and 37-38 per cent in the next two years (due to the change in the method of taxation) and then rose again to 53 per cent in 1962- 63. The decline in individual incomes from business and professions and from dividends during 1962-63 and 1963-64 as presented in the income-tax statistics also seems to be explained by the fact that the time lag involved is about 5-6 years.