Meaning of Assessment year and Previous Year in Income Tax
Income-tax is an annual tax imposed separately for each assessment year (also called the tax year).
This commences from 1st April and ends on the next 31st March.
This is generally for a period of 12 months ending on 31st March just prior to the commencement of the assessment year.
In the case of a source of income coming into existence in the middle of the year,
“This may not run for a full period of 12 months from 1st April to the following 318t March.”
In General, the “previous year” is also referred to as the “Accounting Year” or the “Income Year”.
The previous year to the assessment year 2008-2009 is the financial year starting from 1.4.207 and ending on 31.3.2008. The total income earned during this period is to be taxed during the assessment year 2008-2009 at the rates, and in accordance with the law, applicable to this assessment year.
- Financial Year Vs. Assessment Year Financial Year Accounting period that can start on any day of a calendar year but has twelve consecutive months (52 consecutive weeks) at the end of which account books are...
- Income-Tax Deduction From Salaries During The Financial Year 2011-2012 Under Section 192 CIRCULAR NO 05/2011 Dated: August 16, 2011 Reference is invited to Circular No.08/2010 dated 13.12.2010 whereby the rates of deduction of income-tax from the payment of income under the...
- I-T Officials’ Tax Assessment Limits Raised In a significant organisational revamp, the Central Board of Direct Taxes has raised the monetary limit of tax assessments handled by income tax officers or ITOs. The move is designed...
- Manufacturing Growth Crashes To Two-Year Low India’s manufacturing growth fell to its lowest in more than two years in September, reinforcing fears that an extended period of high policy rates is hurting growth, according to a...
- Korean Economic Growth Hits 8-Year Peak SEOUL—South Korea’s economic growth in the final quarter of last year slowed slightly from the prior three months but accelerated from the year-earlier period, bringing the full-year growth rate to...