Question for every body

ajaj jain sir se class chal rahi hai kya.....

Sec 3 says that the previous year means financial year...

There is a proviso in section 3 for your doubt...

It can start on April 1st or on any other day from which a source comes in to existence during the financial year.

Earlier this date was 1st June every year, But post amendment (VERY OLD) now it is 1st April.

This is a uniform date indicating the begin of a New Financial Year accepted universally(in most of the countries) so it is adopted in India also by the Finance Ministry.

Originally posted by : shushantsinghal
	ajaj jain sir se class chal rahi hai kya.....

Is ka answer ajay jain sir ko khud bhi nahi pata hoga.

YA I TOO HAVE THIS DOUBT.......

IS THERE ANY RULE FOR IT.....

I THINK IT HAS BEEN EXPLAINED IN SEC 3....

Originally posted by : G K
	Sec 3 says that the previous year means financial year...   There is a proviso in section 3 for your doubt... It can start on April 1st or on any other day from which a source comes in to existence during the financial year.

agree

it differs from country to country, and in some cases company to company. Even in india, some listed companies begin FY from other dates.

US govt. starts from Oct 1, Australia from July 1, but most countries, including Indian, China, UK starts from April 1

its related to our old tradditions. search it on google you will have your answer

in all over work around 198 contry have same financial year. like US govt. starts from Oct 1, Australia from July 1, but most countries, including Indian, China, UK starts from April 1

it differs from country to country, and in some cases company to company. Even in india, some listed companies begin FY from other dates.

  if you want to know any thing about it than plz go to google and sarch aboout it... okkkk

can any body tell me why the FY start from 1st April only. 

it can be start from any other date also.

Answer:

1) The Income-Tax Act was enacted in 1961. The Act came into force from April 1, 1962 and that's why our financial year begins on April 1 every year. 

2) So that accounting year doesnt coincide with the periods of high activity, such as Christmas and New Year. 

3) Inventories are higher during December end, thus making it difficult to measure accurately. 

4) India being an agricultural economy, revenue generally 
depends on the unpredictable outcome of the main crop being ripe in feb./march. 

I dont think this is sooooooooo important to discuss about....

If thinking a bit logically,

01-01 to 31-12 = The person would not be able to prepare books on 31-12 for the celebrtaions.

01-07 to 30-06 = Its the Financial Year for Banks.

Diwali to Diwali = Again is known as Marwari Year

Then the Appropriate thought was, 01-04 to 31-03 as the person (in majority) is not bound to any other customs or traditions and can soundly prepare his books. And now why not from other days like Dec to Nov etc. could be because it wants to be in tune of other large number of countries as it will be easy to settle Foreign Transactions...!!

I don't know the logic is Right or Wrong, but this is how I consoled myself.

If anyone has a different answer, please correct me!!

Prior to 1989 or so, an assessee can have different previous years for his various sources of income. For ex:

Business A- Financial year

Business B-English Calendar year

Business C-Year ending on 30th June etc.,

For say, AY 1980-81, his Previous years would be Business A-Year ended on 31.03.80, Business B - Year ended on 31.12.1979 and for C - Year ended on 30.06.1979.

Just to make it Uniform for everybody and for all sources of income, the Govt has brought in an amendment in the definition of PY (Sec.3) making it compulsory for everybody to have an "Uniform Accounting/Previous Year".