NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Concepts in Taxation
Under the Indian Income-tax framework, the 'previous year' for assessing the income of a person who started a business on 10 October 2024 is generally the period from:
The previous year runs from 10 October 2024 to 31 March 2025, because for a newly started business the previous year begins on the date of commencement and always ends on the next 31 March, not after a full twelve months.
- A1 April 2024 to 31 March 2025
- B10 October 2024 to 31 March 2025Correct
- C10 October 2024 to 9 October 2025
- D1 January 2025 to 31 December 2025
Explanation
For a newly set up business, the previous year begins on the date of setting up and ends on the following 31 March. Hence 10 October 2024 to 31 March 2025 is the previous year. The full financial year option ignores that the business did not exist before 10 October.
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