Income Tax Act 2025: Section 3 for Tax Year 2025-26

A “tax year” is the 12-month financial year starting April 1. For new businesses or income sources, it runs from their start date to the end of that financial year.

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Definition of “tax year”

Section 3(1) of Income Tax Act 2025

(1) For the purposes of this Act, “tax year” means the twelve months period of the financial year commencing on the 1st April.

Section 3(2) of Income Tax Act 2025

(2) In the case of a business or profession newly set up, or a source of income newly coming into existence in any financial year, the tax year shall be the period beginning with—

(a) the date of setting up of such business or profession; or
(b) the date on which such source of income newly comes into existence, and,
ending with the said financial year.


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