Relation between finance act and a.y.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2011 I am confused on how Assessment Year and Finance bill are related.Here is what i have in my mind

Every year finance minister places finance bill before both houses of parliament and after approval of parliament will be sent to presidents approval to become finance act.

Say if i am in 2011 i.e i am going to file my tax returns for FY 2010-11 upto march 31st 2011 which falls under AY 2011-12.My question is when will finance bill which tells about taxation for AY 2011-12 will be passed?

Is it in 2011 feb last week or 2010 feb last week?

CA Satish Badve

CA Satish Badve (Expert)
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07 October 2011 Financial year 2011-12
Corresponding Assessment year 2012-13
Budget is passed for Financial year 2011-12 in Feb,11.
The income tax on income earned in the financial year 2011-12 is to be paid in the financial year 2011-12 in the form of advance tax.hence the rates are given in the budget presented in Feb for financial year 2011-12.
The other direct and indirect taxes in the budget will be applicable from Financial year starts from 1st April,2011.
The assessment is done in A.Y.2012-13 for the income earned in F.Y.2011-12

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2011 That means matters related to A.Y 2012-13 are discussed in feb, 2011?

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