What is the period for which a person’s income is taken into account for the purpose of Income-tax?

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Income-tax is levied on the annual income of a person. The year under the Income-tax Law is the period starting from 1 st April and ending on 31 st March of next calendar year. The Income-tax Law classifies the year as (1) Previous year, and (2) Assessment year.

The year in which income is earned is called as previous year and the year in which the income is charged to tax is called as assessment year.

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