Skip to main content

Diffrence between Previous year & Assessment years

Assessment Year [Sec. - 2 (9)]


Meaning and Definition 

Assessment year refers to a year in which financial year is assessed. Assessment year  is the evaluation year of the financial year.

Or
 Assessment year is the tax calculation year.

Explanation
If a person "A" earned income in financial year 2016-17, then he will pay income tax in assessment year 2017-18.

Definition:-

Assessment year may be defined as a year in which the income of the previous year is to be assessed.


Previous year [Sec. -3]


Meaning and Definition

Previous year refers to the year in which income is generated. The income of the previous year is taxed in the immediately following assessment year.

Definition:-

Previous Year means financial year, which is immediately preceding  the assessment years.  

Introduction to Income tax Act 1964
Sr. No. Subjects Name 
Links
1
Previous years & assessment years
2
Assessee
3
Persons
4
Concept of HUF

Comments

Popular posts from this blog

Creditor (Meaning, Definition,Types of Creditor)

What is Creditor? Any person or organization who sales goods or services in credit or grant money on credit to the other person or organization is known as a creditor. A business that provides suppliers or services to companies or an individual and does not demand payment immediately is also considered as a creditor.

Who is Creditor?The creditor may be a person, supplier, or Bank that has provided credit to the company. The amount owed to the creditor is reported on the company balance sheets as liabilities. Creditors can be classified as personal or real. People who loan money to friends or families are known as personal creditors. Real creditors have a legal contract with borrowers, sometimes granting the lender the right to claim any of the debtor real assets (For example, bank or finance company).

Types of Creditor There are two types of Creditor
1) Secured Creditor      2) Unsecured Creditor
1) Secured CreditorThe Creditor or Lender who gives credit to any Company, Firms, or Indiv…