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    Question

    Under the Income Tax Act, “previous year”

    means:
    A The financial year in which income is earned Correct Answer Incorrect Answer
    B The financial year immediately after the assessment year Correct Answer Incorrect Answer
    C The calendar year before the assessment year Correct Answer Incorrect Answer
    D The financial year in which income is assessed Correct Answer Incorrect Answer

    Solution

    Explanation: •As per Section 3 of the Income Tax Act, the previous year is the financial year immediately preceding the assessment year, in which the income is earned. •Example: For Assessment Year (AY) 2024–25, the Previous Year (PY) is 2023–24.

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