Under section 3 of the Income-tax Act, 2025, what is the first tax year of a business newly set up on…

Under section 3(2) of the Income-tax Act, 2025, the tax year of a newly set up business is the period beginning with the date of setting up and ending with that financial year. A business set up on 31 March 2027 therefore has a one-day first tax year: "It begins on 31 March 2027 and ends on 31 March 2027". This corresponds to section 3 of the repealed Income-tax Act, 1961, which defined the previous year.