What is a time period for which a person’s income is taken into account for the purposes of calculating the Income -Tax?
The Income-tax is levied on a person’s annual income, and the year under the Income-tax Law is the period initiating from 1st April and ending on 31st March of the subsequent calendar year.
The Income-tax Law classifies the year as the following: –
- Previous year: – It is the year in which the income is earned.
- Assessment year: – It is the year in which the income is charged to tax.