MANAGEMENT

Detailed explanation-1: -Previous Year (P.Y.) In layman language the current financial year is known as the previous year. The financial year starts from 1st April and end on 31st March of the next year. For Instance, for the salary income earned from 1 April 2017-31st March 2018 . The previous year would be 2017-18.

Detailed explanation-2: -’Previous Year’ in the Income Tax Act, 1961 is an important concept associated with the payment of income tax in India. According to Section 3, the previous year is the year preceding the assessment year. Also known as the Financial year, it starts from 1st April to 31st March of the following year.

Detailed explanation-3: -Assessment year and previous year are two important terms for filing income tax returns. Assessment year is the year in which the annual income of an individual is assessed for income tax filing in process. The previous year is the year in which the income is earned. The previous year precedes the assessment year.