Income tax is a source of revenue to the Government.Without proper Funds the government would not function properily.

1. INTRODUCTION
• Tax is collection of money for the public purpose enforceable by law
and it is not for payment of any other consideration.
• It plays an important role in the growth and development of Country’s economy,
infrastructure and other facilities.
• It can be broadly classified into Direct Taxes and Indirect taxes.

2. INTRODUCTION
• IncomeTax is one of the main sources of Direct taxes.
• Every person has to pay, if his total income exceeds the limit fixed by the government
every year.
• It is calculated on the income of previous year, but it is to be paid in the consecutive year
called as assessment year.

3. • The income tax was introduced in India during 1860 to meet the losses incurred during
that time.
• After lot of Amendements the IncomeTax Act came in to force on 1st
April 1962

4. ASSESSMENTYEAR SEC.2(9)
• TheYear, in which the income of the previous year is assessed to tax is known as
assessment year.
• Assessment year means the period of 12 months commencing on the 1st
April of every
year and ending on March 31of the immediately following year.
• The income of the previous year of an assessee is assessed to tax during the next year.
• The current Assessment year Starts from 01.04.2025 and ends on 31.03.2026

5. ASSESSMENTYEAR SEC.2(9)
• Current AssessmentYear=01.04.2025-31.03.2026

6. PREVIOUSYEAR SEC.3
• The year in which income earned is known as the previous year.
• It also consists of 12 Months starting from 1st
April to 31st
March of Every year.
CURRENT PREVIOUSYEAR=01.04.2024 -31.03.2025