{"id":30123,"date":"2025-02-14T10:19:32","date_gmt":"2025-02-14T04:49:32","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=30123"},"modified":"2025-04-10T08:11:12","modified_gmt":"2025-04-10T02:41:12","slug":"tax-year-concept","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/tax-year-concept\/","title":{"rendered":"Tax Year Concept"},"content":{"rendered":"<h2>Tax Year Concept Latest News<\/h2>\n<p>The Income Tax Bill 2025, tabled in Parliament recently, defined a new concept of \u2018tax year.<\/p>\n<h2>About Tax Year Concept<\/h2>\n<ul>\n<li><strong>Currently, income tax laws use the assessment year to refer to the year following the financial year in which income is earned.\u00a0<\/strong><\/li>\n<li>This often <strong>leads to confusion<\/strong> when filing taxes or depositing self-assessment and advance tax.\u00a0<\/li>\n<li>The <strong>new bill proposes a unified &#8216;Tax Year&#8217;,<\/strong> which will simply <strong>refer to the same financial year (April 1\u2013March 31),in which income is earned and tax is filed.\u00a0<\/strong><\/li>\n<li>Under the new system, the &#8216;Tax Year&#8217; will <strong>run from April 1 to March 31, replacing the assessment year.<\/strong><\/li>\n<li><strong>Benefits of Tax Year:<\/strong>\n<ul>\n<li>The primary benefit of Tax Year is that this will r<strong>emove the confusion between Previous Year and Assessment Year.<\/strong><\/li>\n<li>This will also <strong>help India fall in line with international standards<\/strong> since many countries follow the concept of a singular tax year.<\/li>\n<li><strong>Advance tax computation will also be made easier <\/strong>since taxpayers will be able to refer to the Tax Year alone instead of navigating through Previous Year and Assessment Year.<\/li>\n<\/ul>\n<\/li>\n<li><strong>An example<\/strong> of how Tax Year will work:\n<ul>\n<li>According to the Income Tax Act 1961, if a person earns in the year April 1, 2024\u2013March 31, 2025, this time period will be known as the Previous Year and 2025-26 when tax will be assessed for said income; that time period is known as the Assessment Year.<\/li>\n<li>In the new draft bill, if a person earns in the year April 1, 2025\u2013March 31, 2026, it will simply be known as Tax Year 2025-26.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Tax Year Concept FAQs<\/h2>\n<p><strong>Q1<\/strong>. What is TDS in income tax?<\/p>\n<p><strong>Ans<\/strong>. TDS (Tax Deducted at Source) is a system where tax is deducted at the time of payment for income like salary, rent, or professional fees and deposited with the government to ensure advance tax collection.<\/p>\n<p><strong>Q2<\/strong>. Is GST direct or indirect tax?<\/p>\n<p><strong>Ans<\/strong>. GST, known as the Goods and Services Tax, is an indirect tax.<\/p>\n<p><strong>Q3<\/strong>. What is angel tax?<\/p>\n<p><strong>Ans<\/strong>. Angel Tax is a tax levied on the excess capital raised by a startup when it receives investments from angel investors or other sources at a valuation higher than its fair market value.<\/p>\n<p><strong>Source<\/strong>: <a href=\"https:\/\/www.ndtvprofit.com\/personal-finance\/new-income-tax-bill-introduces-tax-year-concept-no-more-fy-ay-confusion-for-taxpayers\" target=\"_blank\" rel=\"nofollow noopener\">NDTVP<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tax Year simply refers to the same financial year (April 1\u2013March 31), in which income is earned and tax is filed. <\/p>\n","protected":false},"author":5,"featured_media":30124,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-30123","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/30123","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=30123"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/30123\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/30124"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=30123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=30123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=30123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}