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National · Question 35 of 100

Question 35

MediumOriginal question

Which term does the Income-tax Act, 2025 introduce in place of 'previous year' and 'assessment year'?

Options for question 35

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. The Act introduces a single 'tax year', ending the two-term system.

  2. Under the 1961 Act, income of one year was assessed in the next, which is why two terms were needed.

Concept
Tax year under the new Act
Typical time
50 s
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Ten questions from National, at your own pace.

Written from
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Practise this chapter →

Ten questions from National, at your own pace.