While submitting their returns on revenue, many particular person taxpayers get confused between the monetary 12 months and the evaluation 12 months. The lack of readability leads to pointless errors whereas filling the revenue tax return varieties, resulting in a number of points which are usually confronted by taxpayers. This may be utterly prevented if taxpayers know the clear distinction between the monetary 12 months and the evaluation 12 months. Income tax return varieties have mentions of each monetary 12 months and evaluation 12 months. Assessment 12 months is just the time throughout which the revenue earned within the monetary 12 months is assessed.
This implies that the evaluation 12 months is the 12 months that comes proper after the monetary 12 months. For instance, taking this 12 months’s deadline, the final date for submitting revenue tax returns for the fiscal 12 months 2019-20 with none late charge was January 10, 2021. However, all these taxpayers who’ve nonetheless not filed their returns on revenue can nonetheless accomplish that by March 31, 2021. However, whereas taxpayers are submitting their revenue tax returns for the monetary 12 months 2019-20, however the evaluation 12 months is 2020-21.