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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.

 Assessment year is the tax calculation year.

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


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.


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

Introduction to Income tax Act 1964
Sr. No. Subjects Name 
Previous years & assessment years
Concept of HUF


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