“Assessment Year” means the period of 12 months commencing on the 1 St. day of April every year.
In India, the Govt. maintains its accounts for a period of 12 months i.e. from 1st April to 31st March every year. As such it is known as financial year. The income tax department has also selected same year for its assessment procedure.
The Assessment year is the financial year of the Govt. of India during which income of a person relating to the relevant previous year is assessed to tax. Every person who is liable to pay tax under this Act. files return of income by prescribed dates. These returns are processed by the income tax department officials and officers. This processing is called assessment. Under this income returned by the assessee is checked and verified.
Tax is calculated and compared with the amount paid and assessment order is issued. The year in which whole of this process is undertaken is called assessment year. |
