PY for newly incorporated company

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112 Points Posted on 22 January 2021
As in case of newly incorporated company previous year will be the year from which it starts it's operation, till ending of financial year.



If ABC ltd is incorporated on 10.01.2020, it will prepare it's finacials for period 10.01.2020 to 31.03.2022 (as per definition of financial year given in companies Act).
Then what will be the previous year for the ABC Ltd?
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On 22 January 2021 at 08:54 Report
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Quick Summary
This discussion clarifies the definition of the 'previous year' for a newly incorporated company. It explains that the first financial period runs from the company's incorporation date until the end of the relevant financial year. For example, a company incorporated on 10.01.2020 would prepare financials from 10.01.2020 to 31.03.2020 for the financial year 2019-20.

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Chartered Accountant
24588 Points Posted on 22 January 2021
If it is incorporated on 10.1.2020 then the financials should be prepared from 10.1.2020 to 31.3.2020 for
FY 2019-20 or previous year 2019-20 and for fy 2020-21 from 1.4.2020 to 31.3.2021
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On 22 January 2021 at 12:30
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17269 Points Posted on 22 January 2021
Previous year meaning Financial year from April to March. First year will be from 10-01-2020 to 31-03-2020
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On 22 January 2021 at 14:07

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