Question { TATA, 149018 }

what is assessment year and previous year ?

Answer

ASSESMENT YEAR
`Assessment Year� is the period of 12 months commencing
from the 1st date of April and ending on the 31st day of
March next year. `Previous Year� is the financial year
immediately preceding the assessment year. For instance, the
current assessment year is A.Y.2001-2002 which starts from
1st April 2001 and ends on 31st March 2002. The previous
year relevant to this assessment year would be the financial
year 2000-2001 starting from 1st April 2000 and ending on
31st March 2001. As the income of the previous year is to be
taxed in the assessment year, the income of financial year
2000-2001 will be taxed in Assessment Year 2001-2002.
Likewise, income of F.Y.2001-2002 will be taxed in
A.Y.2002-2003 (
(((((((((( Previous year is a year in which income is
earned and that earned income is assessed to tax in the
assessment year. ex. for financial year 2010-2011 it is
previous yr and its assessment year is 2011-2012 i.e. income
earned from 1/04/2010 to 31/03/2011 is liable to tax in the
assessment year.)))))))))