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 earns income in the financial year 1 April 2024 to 31 March 2025 is generally:
The previous year is the financial year in which the income is earned, so income earned from 1 April 2024 to 31 March 2025 has 2024-25 as its previous year. It is taxed in the next year, the assessment year 2025-26.
- AThe financial year 2023-24
- BThe financial year 2024-25Correct
- CThe assessment year 2024-25
- DThe calendar year 2025
Explanation
The previous year is the financial year in which income is earned, here 2024-25. The income is assessed in the following year, the assessment year 2025-26. Option A is a year earlier and option C confuses the assessment year with the previous year.
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