Question for every body

in our india it was like dat under sec3 how ever it  differs for different countries[

it was defined in sec 3 likedat

Originally posted by : MARGARET PRINCY SWAMYNATHAN
	can any body tell me why the FY start from 1st April only.  it can be start from any other date also. Answer: 1) The Income-Tax Act was enacted in 1961. The Act came into force from April 1, 1962 and that's why our financial year begins on April 1 every year.  2) So that accounting year doesnt coincide with the periods of high activity, such as Christmas and New Year.  3) Inventories are higher during December end, thus making it difficult to measure accurately.  4) India being an agricultural economy, revenue generally  depends on the unpredictable outcome of the main crop being ripe in feb./march.

Dont give any sugesstion , when you yourself dont know, the answer .......

all the four points you have mentioned are baseless.

Here , we are interpreting the Law,   and watever is given in the law is only the law.

Infact , many people have answered this question very well here ,   And the answer is in section 3 and 2 (34) & 2 (9) of the income tax Act, 1961.

Section 3 : "Previous year defined."

3. For the purposes of this Act, previous year means the financial year immediately preceding the assessment 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 2(9) assessment year means the period of twelve months commencing on the 1st day of April every year ;

Section (34) previous year means the previous year as defined in section 3 ;

Regards

Amit Ingale.

I hope , the doubt of everybody is solved now, Or will be soved now.

Section 3 : "Previous year defined."

3. For the purposes of this Act, previous year means the financial year immediately preceding the assessment 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 2(9) assessment year means the period of twelve months commencing on the 1st day of April every year ;

Section (34) previous year means the previous year as defined in section 3 ;

Regards

Amit Ingale.

BECAUSE ON 1 APRIL DERE IS APRIL FOOL DAY

and how is april fools day related to financial year?

Hello Pradeep,

This is very nice question--------------------

can any body tell me why the FY start from 1st April only. 

it can be start from any other date also.

Answer is ---------- The Indian constitution had empowered only the central government to levy and collect

income tax. The Income-Tax Act was enacted in 1961.

The Act came into force 1st Apri, 1962 and that's why our financial year begins on 1st April every year

Agar financial year kisi aur date se shuru hota tab log ye puchhte ki 1st april se start kyon nahi hota........

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