What do the terms financial year, previous year and assessment year imply with regard to income-tax filing?
—Vinay Bhat A financial year is a period of 12 months commencing from 1 April of a given year and ending on 31 March of the next year. For income tax purposes, a financial year is the period during which the income has been earned. An assessment year is the year immediately following the financial year. The income earned in a financial year is assessed in the following year, that is, the assessment year. The year before the financial year is referred to as the previous year. For example, the income you earned between 1 April 2007 and 31 March 2008 (this will be termed as financial year 2007-8) will be assessed for tax in the year 2008-9 (this is the assessment year 2008-9 and will also be mentioned in your ITR form). In this instance, the previous year will be 2006-7.
Related Questions
- May a superintendent request academic assessment information for the previous school year when the student was not in the district (home education, other public school, elsewhere)?
- If I qualified to use the head of household filing status in a previous year, why did the Franchise Tax Board send me an audit letter this year?
- Can I pay my tax liability by instalments after I received the Assessment Notice for that financial year?
