meaning of effective date

[kantipudi satyanarayana]

Sir,

What is the meaning of an income tax amendment coming into force with effect from 1 st April 2020 i.e.fy 2020-2021 or ay 2020-2021 ? and an amendment coming into effect from 1.6.2020

[DR.MARIAPPAN GOVINDARAJAN]

For the previous year 2020-21 (financial year) - assessment year 2021 - 22.

[DEV KUMAR KOTHARI]

dates are expressed in ddmmyyyy pattern

Usually all amendments are specified to come into force from particular date , as per preamble or with specific amendment. So one should see them.

W.E.F. 01042020 will generally mean {as mentioned in preamble of FA} applicable from assessment year beginning on 01042020 i.e. assessment year 2020-21 ( relevant to previous year to end on 31032020 or PY 2019-20).

WEF 01st June or some other date are used for procedural provisions, These come into force from date so specified. So amendment wef 01062020 will apply from 01062020.

W.E.F. 02042020 will mean applicable from assessment year beginning after 02042020 i.e. assessment year beginning on 01042021 - AY 2021-22 ( relevant to previous year to end on 31032021 or PY 2020-21). e.g. date 2nd April was used in relation of some amendments relating to depreciation.This seems a practice followed some times.

AI Summary

Effective date of tax amendment defines when an amendment applies to the relevant assessment year and prior year. An amendment W.E.F. 01.04.2020 is treated as applicable to the assessment year beginning 01.04.2020 and thus affects the previous year ending 31.03.2020, per the finance act preamble or the amendment's commencement clause. An amendment W.E.F. 01.06.2020 or other calendar date generally takes effect from that calendar date itself and governs procedural provisions from that day. W.E.F. dates shortly after 01.04 may indicate applicability to the subsequent assessment year, so the preamble or specific wording must be checked.