31 May 2014
in order to maintain uniformity of income calculation with respect to period, govt. has specified 12 months period i.e. 1st April to 31st March. Hence income earned upto 31st March is taxed in the next year which is called assessment year and period of earning income is called previous year. e.g. Saving bank interest earned on 30/09/2013, hence previous year is 2013-14 and it will be taxable in 2014-15 i.e. Assessment Year (A.Y.)
31 May 2014
A very fundamental and basic thing......To assess the income...there has to have a cut off date........(Except in some exceptional cases, the income of the previous year can be ASSESSED once the year is over....isn't it?)
CAclubindia
