Question:
Which of the following would be the first previous year in case of a business or profession newly set up on 31st March, 2020 as per the Income Tax Act, 1961?
Which of the following would be the first previous year in case of a business or profession newly set up on 31st March, 2020 as per the Income Tax Act, 1961?
Updated On: Nov 7, 2024
- Start from 1st April, 2019 and will end on 31st March, 2020.
- Start from 31st March, 2020 and will end on 31st March, 2020.
- Start from 1st April, 2020 and will end on 31st December, 2020.
- Start from 1st January, 2020 and will end on 31st March, 2020.
Hide Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
For a business or profession newly set up on 31st March, 2020, the first previous year, as per the Income Tax Act, 1961, would begin and end on the same date, i.e., 31st March,2020, since this date marks the close of the financial year.
Was this answer helpful?
0
0
Top Questions on Tax Law
- What is the condition prescribed under Section 6 of the Income Tax Act, 1961 for an individual to be classified as a ‘Resident’ in India for tax purposes?
- Under which provision of the Income Tax Act, 1961 is the scope of the resident’s ‘total income’ covered?
- In the present case, the levy of IGST on the supply of ocean freight services under the reverse charge mechanism on the importer, when the value of such service is already included in the transaction value of imported goods, amounts to double taxation. The concept of double taxation implies that the same subject matter is taxed twice when it should be taxed only once. The GST law, as framed, does not envisage taxation of a transaction twice, and the fundamental principles of GST do not support such an imposition. Further, the importer, who is not the recipient of the service but is treated as a deemed recipient under the reverse charge mechanism, cannot be made liable to pay tax on a service that they have not directly availed. This stretches the scope of reverse charge mechanism beyond its intended purpose, which is to simplify tax collection by shifting the liability to pay tax from the service provider to the service recipient, particularly in cases where the service provider is located outside India and does not have a presence within the taxable territory. Moreover, the constitutional framework requires that a tax should be levied with legislative competence and should not contravene any fundamental rights guaranteed under the Constitution. The imposition of IGST on ocean freight under the reverse charge mechanism without proper legislative backing undermines the very essence of taxation principles enshrined in the Constitution of India.
(This extract is taken from Mohit Minerals v. Union of India CA No. 1390/2022) - Following principles are considered as settled while interpreting taxation statutes:
- The Supreme Court of India in which case dealt with the validity of the entry tax?
View More Questions
Questions Asked in AIBE exam
- Which of the following injunction can be granted only by the decree made at hearing and upon the merit of the suit?
- AIBE - 2023
- Laws of Contract
- For what duration is a woman entitled to leave with wages for tubectomy operation as per the Maternity Benefit Act, 1961?
- AIBE - 2023
- Labour & Industrial Law
- Imagine an IPL team sets up a company to sell its own range of clothes. What type of intellectual property can the team use to show that the clothes are made by them?
- AIBE - 2023
- Intellectual Property Law
- How long do patents usually last for?
- AIBE - 2023
- Intellectual Property Law
- What is the default interest payable under Section 63A of the Transfer of Property Act, 1882?
- AIBE - 2023
- Laws of Contract
View More Questions