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

Commerce Tutors

We believe in providing quality content to our users.

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 Creditor The Creditor or Lender who gives credit to any Company,

Introduction to Income Tax Act 1961

In India, Income tax is a tax you pay to the government based on your income. The government uses this tax money for various purposes including public services, infrastructure development, defence spending and subsidies among other options. It is compulsory that one has to pay income tax if the income he or she earns crosses beyond a certain limit.   The Income Tax Act,enacted in 1961, is a statute that focuses on the different rules and regulations that govern taxation in the country. It provides for collecting, levying, administering and recovering income tax for the Indian government. The Income Tax Act,1961 contains a total of 23 chapters and 298 sections. These deal with various aspects of taxation in India.   During the month of February, every year, the Indian government presents a finance budget. There are various amendments to the Income Tax Act in the finance budget. This includes changes in tax slabs wherever applicable. For example, the Finance Minister announced tha

Terminology of Accounting(लेखांकन की पारिभाषिक शब्दावली)

1) Trade(व्यापार) :-    Purchase and sales of products for motive of earning profit is known as Trade.(लाभ कमाने के उद्धेश्य से किया गया वस्तुओ का क्रय-विक्रय व्यपार कहलाता है।) 2) Profession(पेशा) :- Activities which requires special knowledge and skill to be applied by an individual in his work to earn a living is known as profession. Examples- lawyers are professionals,engaged in legal profession governed by bar council of india, Doctor are professionals who are in medical professions and are governed by Medical Council of india.(आय अर्जित करने के लिए किया गया कोई भी कार्य जिसमे प्रशिक्षण की आवश्यकता होती है उसे पेशा कहते है। जैसे वकील, डॉक्टर, चार्टर्ड अकाउंटेंट. इन कार्यो को करने के लिए प्रशिक्षण की आवश्यकता होती है।)  3) Business(व्यवसाय) :-  Bussiness refers to those economic activites which are connected with the production, purchase, sales or distribution of goods or services with the main objectives of earning profits. Examples- Fishing, mining, farming, manufacturi