NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Concepts in Taxation
Under the Indian income tax framework, the 'previous year' for an assessee who earns income from a business that started on 1 July 2024 is, for the first assessment year, which period?
The first previous year runs from the date the business is set up, 1 July 2024, to the next 31 March, which is 31 March 2025. Previous year always ends on 31 March, so a new business gets a shorter first year.
- A1 April 2024 to 31 March 2025
- B1 July 2024 to 31 March 2025Correct
- C1 July 2024 to 30 June 2025
- D1 January 2025 to 31 March 2025
Explanation
For a new business, the previous year runs from the date of setting up the business to the following 31 March. Hence 1 July 2024 to 31 March 2025 is the first previous year. The full financial year option ignores the actual start date, and a 12-month period from July does not align to 31 March.
Did you get it right without looking?
One question tells you little. A timed set on Concepts in Taxation shows your real accuracy, how long you take and where you lose marks.
More Concepts in Taxation questions
- Mr. Raghav Iyer, a resident individual, has a gross salary of ₹9,00,000 and no other income. He opts for the new tax regime. Ignoring the re…
- Mr. Raman Iyer, aged 45, is a resident individual who has opted for the old tax regime. His income for the year: salary income (net of stand…
- Caselet: Ms. Kavita Rao, a resident individual aged 35, earns the following for the year: salary (taxable) Rs 12,00,000; house property loss…
- Mr. Rohan Mehta, a resident individual aged 35, has taxable income of Rs 12,00,000 under a hypothetical regime with these slabs: up to Rs 4,…
- Mr. Raghav Menon, a resident individual aged 45, opts for the old tax regime. His gross total income for the year is Rs 9,20,000, and he has…
- Which of the following receipts of a resident individual is classified as agricultural income and is exempt from income tax, subject to the …