Previous year

What is Previous Year ? – Income Tax

1 minute, 2 seconds Read

What is Previous Year?

Section 3:

For the purposes of this Act, “previous year” means the financial year immediately preceding the assessment year :

What is Previous Year?

Provided that, in the case of a business or profession newly set up, or a source of income newly coming into existence, in the said financial year, the previous year shall be the period beginning with the date of setting up of the business or profession or, as the case may be, the date on which the source of income newly comes into existence and ending with the said financial year.

 

Section 4 Charge of Income Tax

Income-tax is to be paid by every person. The term ‘person’ as defined under the Income-tax Act under section 2(3) covers in its ambit natural as well as artificial persons.

For the purpose of charging Income-tax, the term ‘person’ includes Individual, Hindu Undivided Families [HUFs], Association of Persons [AOPs], Body of individuals [BOIs], Firms, LLPs, Companies, Local authority and any artificial juridical person not covered under any of the above.

Thus, from the definition of the term ‘person’ it can be observed that, apart from a natural person, i.e., an individual, any sort of artificial entity will also be liable to pay Income-tax.​

author

EduTaxTuber Team

We are here to help for every updates related to everything...👍📙👍📗

Similar Posts

Leave a Reply

Realme 10 Pro and 10 Pro+ Launched RBI Monetary Policy Highlights England vs Senegal: FIFA World Cup 2022 No Curfew in Mumbai: Section 144 Imposed to ensure Peace Elon Musk suspends Kanye West Twitter Account for inciting violence