Investment lessons for ITR
Assessment year and financial year are most comman word we listen during february to april every year, since the term (financial year) (previous year) and assessment year are often used in income tax laws, its helpful for all taxpayers to know their basic meaning and importance of this law
FINANCIAL YEAR
What is financial year
- A financial year is a period of 12 months starting on april 1st and ending on march 31th of the following calender year, during the financial year an individual may earn his/her salary, incure expenses and profits on a business and earn income on a property. All the financial transactions you do during this period must be considered for filling ITR.
ASSESSMENT YEAR
What is Assessment year
- The assessment year is a period of 12 months that immediately succeeds the financial year. this is the period when the earned income is assessed and taxed accordingly. for an example for the financial year starting APRIL 1, 2021 and ending on March 31, 2022, the corresponding assessment year will be 2022-2023