Financvial Year under Income Tax

Please let me know fir further concern.

Prior to assessment year 1989-90 asssses were ata liberty to adopt any previous year  lik july - june year  or  august - july year or any other period

How ever with effect from AY 1989-90 onwards the uniform PY  conceot has been introduced whereby all are requied to follow financial year as the previous year  for the purpose of ITax Act.

The period of 12 months commencing on the 1st day of april every year is known as the ASSESSMENT YEAR as defined in section 2(9)

An assessment year is a financial year which immediately succeeds  the relevant previous year .

Eg; for the previous year 2008-09 the relevant assessment year is 2009-10

for the assessment year 2008-09 the relevant previous year is 2007-08