Definitions: Income Tax Act : What is assessment year? what is previous year?
Assessment Year (AY): It means a period of 12 months starting from day 1 of April, every year, hence Assessment year will start from 1st April and will ends on 31st March. For example the Assessment Year 2012-13 will start on o1-April-2012 and it will end on 31-March-2013. Assessment Year finds it’s application in income tax, since the income earned by assessee in previous year is assessed in Assessment year (AY).
Previous Year (PY): continue reading…




