when the new business is commenced on1st july,2018,then the assessment year is?
Answers
Answer:
What do you mean by the term “Year”?
Or if I ask you more specific then what is the period of a year?
Your simple reply will be from 1st January to 31st December i.e. a calendar year.
Oh, it’s so easy, right?
But if you talk about the financial year then the answer is a little different.
The period of the financial year starts from 1st April of the current year and will end on 31st March of the next year.For example, the financial year 2019-20 means from 1st April 2019 to 31st March 2020.
You will liable to pay tax for the income earned in a financial year.
So, whenever you will talk about a financial year you have no confusion about the period.
What is Assessment Year?
According to the provisions of Section 2(9) of the Income Tax Act 1961 the term “Assessment Year” means a period of 12 months commencing on 1st April of every year and ending on 31st March of the next year.
For example, the assessment year 2019-20 commenced on 1st April 2019 and will end on 31st March 2020.
Assessment means evaluation or judgment of something.
In the case of income tax, the term assessment means an evaluation of the income of the assessee.
Explanation: