Summary
- The concept of "Previous Year," defined under Section 3 of the Income Tax Act, 1961, dictates when income is assessed for tax purposes in India.
- It refers to the financial year immediately preceding the Assessment Year, running from April 1st to March 31st.
- Special provisions exist for new businesses and income sources, while exceptions allow immediate taxation in cases of non-residents or individuals leaving India.
- Understanding this framework is crucial for taxpayers to navigate their tax liabilities and ensure compliance with evolving tax laws.
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