What is assessment year?

Hey buddy. I can tell you about what is assessment year. The 12-month period immediately after the fiscal year is the assessment year. Revenue generated throughout the fiscal year is subject to taxation during the April 1 to March 31 period. I have shared more details on it below for your reference.

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What is Assessment Year in Income Tax?

In India, the Assessment Year refers to the Income Tax Department assessing and taxing the financial year in which the income earned during the previous year (PY). In simple language, it is the year immediately following the year in which the income is earned.

1. The year immediately following the PY, in which the taxpayer files the income tax return and pays taxes for the income earned in the PY.

2. For example, if income is earned between 1st April 2023 and 31st March 2024 (PY 2023-24), the AY will be 2024-25.

3. Taxpayers are required to declare their income, deductions, and tax liabilities for the PY during the AY. Filing of Income Tax Returns (ITR) for a specific AY is typically done by 31st July or a notified due date.

4. It is used as a reference period for tax officials to process tax filings, issue refunds, or raise demands. All tax forms, notices, and correspondence with the Income Tax Department refer to the AY.

I hope you understood what is the assessment year.

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How to Get Income Tax Assessment Order Online

The financial year begins on April 1 and finishes on March 31. The assessment year is the year following the financial year in which the F.Y.'s income is assessed. We all struggle to understand the Assessment Year and Financial Year when it comes to income tax filing. So, in this article, I will describe what is Assessment Year.

What is the Assessment Year?

The Assessment Year is the financial year of the Government of India during which your income from the previous year is assessed for taxation. Every individual who is subject to taxation under this Act is required to file a return of income by the specified deadlines. The income tax department's officials and officers handle these returns. This procedure is known as evaluation. This is where the assessee's income is verified and validated.

An assessment order is issued when the tax is calculated and matched to the payment made. The assessment year is the year in which the entire procedure is completed. The assessment year (from April 1 to March 31) in which income produced by you in a given financial year is assessed. For example, earnings from the Financial Year 2017-18 (April 1, 2017 to March 31, 2018) will be taxable in the Assessment Year 2018-19. (i.e. 1st April 2018 to 31st March 2019). In contexts, the Assessment Year is the year following the Financial Year.

Facts about the Assessment Year:

• When it comes to preparing tax returns, you must keep in mind that Assessment Year and Financial Year are two distinct time periods.

• The term Assessment Year will always be used on ITR forms, and it is critical that taxpayers do not mistake this phrase with Financial Year.

• The papers that taxpayers refer to in the ITR form, such as Form 26AS, Form 16 A, capital gains statement, and tax deducted at source or TDS, must all be for the same financial year.

• In fact, the Financial Year is applied to all evidence presented for assessment during the Assessment Year.

I hope you understood what is Assessment Year.