Question

Year in which income is taxable, is known as_____and year in which income
is earned, is known as______.
(A) Previous year, Assessment year
(B) Assessment year, Assessment year
(C) Previous year, Previous year
(D) Assessment year, Previous year​

Answer 1

Answer:

option D is the correct answer

Answer 2

The year in which income is taxable is known as the assessment year and the year in which income is earned is known as the previous year. (Option D)

• The assessment year is the year that follows the fiscal year. This is when the money earned throughout the fiscal year is assessed and taxed.
• The fiscal year and the assessment year both start on April 1 and end on March 31.
• In most cases, income earned in a previous year is assessed or charged to tax in the following year.
• As a result, the assessment year is the taxable year, although the preceding year is the year in which revenue is created.
• Thus, option D is correct.