Sec. 2(9) of the Act defines a ‘assessment year’ as “the period of twelve months commencing on the first day of April every year “.  Comments :
An assessment year begins on 1st April of every year and ends on 31st March of next year.
For example, the current assessment year 2012 – 2013, has begun on 1st April, 2012 and will end on 31st March, 2013. A financial year means the period of 12 months from 1st April to the following 31st March.
This is the accounting year of the Government. The Income earned by a person during one financial year is taxed in the next financial year. The year in which income is earned is called previous year and the next year in which the income is taxed is called assessment year. Thus, the total income of a person during the financial year (previous year) 2011-2012 will be taxed in the next financial year (assessment year) 2012-2013.
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