Doubt in taxation(income )

Financial year is a year starting from Apr and ends in March. Previous year is the year in which we earn income and Assessment Year is the year in which we pay taxes. Say, u have earned income in the yr 20-21, you need to pay the tax on income in 21-22. Here, 20-21 is Previous year and 21-22 is assesment year

Be The Change

CA Inter

★ 11K+

21-Aug-22 11:16

The year in which income Is earned (Apr to Mar 2022) is financial year. The tax is assessed in next year (2022-23) which is assessment year

CA Suraj Lakhotia

Admin

21-Aug-22 11:16

Financial year starts from 1st April to March31.It is the year where we earn income. We will pay income tax in the next year ( Assessment year) .

Shankari C

CA Inter

★ 12K+

21-Aug-22 11:48

Previous year - it is financial year immediately preceding the assessment year Assessment year - it is Period of 12months Start with the 1st April of every year..... In addition to above to get extra point. In previous year whatever income that you would have earned it must be taxed in assessment year. And there are some exceptions says whatever that you have earned it has to table in the previous year itself.... To understand the example you need to the icai modules... Thanks you :)

Balachandar S

CA Inter

★ 59K+

21-Aug-22 16:40

Financial year is nothing but previous year. Previous year refers to year in which a person earns income And such earned income will be taxable (assessable) in assessment year

Thanusha Lakshmi

CA Final

★ 3K+

23-Aug-22 20:30