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Taxation for government employees

Ks (Ac) (138 Points)

04 July 2023

does the previous year of government employees is from march to February ?? and which section previous/financial year for goverment employees is defined

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 04 July 2023

For all the assesses previous year is defined as the relevant financial year, i.e. from April to March only.

But the calculation of salary is based on payment bases. So the salary of March you receive in April next FY, as such the confusion.

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AndrewHunter (Moonlight) (22 Points)
Replied 06 July 2023

Originally posted by : Dhirajlal Rambhia bloxd io
	does the previous year of government employees is from march to February ?? and which section previous/financial year for goverment employees is defined

Yes, the previous year for government employees is generally considered to be from March to February. This is because the financial year in India runs from April 1st to March 31st of the following year. Therefore, the previous year for tax purposes is the financial year that has just ended, which runs from April of the previous year to March of the current year.

The definition of the previous/financial year for Indian government employees is provided in the Income Tax Act, 1961. Section 2(34) of the Act defines the term "previous year" as the financial year immediately preceding the assessment year. The assessment year is the year in which income tax is assessed, which is the year following the previous year. For example, the assessment year for the financial year 2021-22 is 2022-23. So, the previous year for the assessment year 2022-23 is the financial year 2021-22, which runs from April 1, 2021, to March 31, 2022.

dura nuta (4 Points)
Replied 13 November 2023

@ just fall

In India, the financial year for government employees, as well as for individuals in general, runs from April 1st to March 31st. This means that the financial year starts on April 1st and ends on March 31st of the following calendar year. The assessment year, during which income is assessed for tax purposes, follows the financial year.