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What is meant by assessment year?
Assessment year is simply the time during which the income earned in the financial year is assessed and this means that it is the year that comes right after the financial year. The income earned in a financial year is taxed in the assessment year, which is why the assessment year is important in the ITR form.
What do you mean by assessment year with example?
Assessment Year is the year that comes right after the financial year (FY). For example; considering the current scenario; for the period 1st April 2020 to 31st March 2021, the assessment year will be the next one that is from 1st April 2021 to 31st March 2022.
What is assessment and previous year?
The Previous Year is the year for which the data and sources of income are collected and organized whereas the Assessment Year is one in which the data of the Previous Year is assessed, and Income tax is calculated.
What do you mean by previous year?
The year in which income is earned is known as the previous year. In layman language the current financial year is known as the previous year. The financial year starts from 1st April and end on 31st March of the next year.
What would be the assessment year of the financial year 2020 2021?
For instance, if your financial year is from 1 April 2020 to 31 March 2021, then it is known as FY 2020-21. The assessment year for the money earned during this period would begin after the financial year ends – that is from 1 April 2021 to 31 March 2022. Hence, the assessment year would be AY 2022-22.
Why previous year is called the income year?
Previous Year (P.Y.) As per the Income Tax law the income earned in current year is taxable in the next year. The year in which income is earned is known as the previous year. For Instance, for the salary income earned from 1 April 2017 – 31st March 2018 .
What is the latest assessment year?
Current assessment year (AY) is 2021-22 and is relevant for the financial year (FY) 2020-21.
What is previous year in 15G?
Previous Year – Mention the financial year for which you are submitting the form. Residential Status – Only a resident of India can submit Form 15G. Mention your residential status as per section 6 of the income tax act, 1961. Flat/Door/Block Number – Mention your permanent address details.
What is meant by tax year?
A “tax year” is an annual accounting period for keeping records and reporting income and expenses. Fiscal year – 12 consecutive months ending on the last day of any month except December. A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month.