An established business earns income between 1 April 2026 and 31 March 2027. To which tax year does this income belong under the Income-tax Act, 2025?
Question and options
An established business earns income between 1 April 2026 and 31 March 2027. To which tax year does this income belong under the Income-tax Act, 2025?
2026–27
2027–28
2028–29
2025–26
Answer and explanation
Correct answer: A - 2026–27
Section 3(1) of the Income-tax Act, 2025 makes the tax year the financial year beginning on 1 April, so income of 1 April 2026 to 31 March 2027 belongs to tax year 2026–27. The idea of a following assessment year, which would point to 2027–28, has no place under the new Act.
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