Please explain Previous Year and Assessment Year.
Please explain Previous Year and Assessment Year.
Chiranjibi Jun. 27, 2018
Previous year is a period in respect of which a person has to pay tax. In income tax act the previous year is a period of 12 months beginning from April 1 to March 31. Assessment year is a 12 months period following the previous year during which the assessee has to file his return of income.
For clarification:
If you want to pay tax on the income you earned during the Financial Year 2017-18, the Previous year would be 2017-18 and the Assessment Year would be 2018-19.
