Applicability of the provisions of Income tax Act as on the first day of April of the AY for computation of income?

[swapna doifode]

i have this basic query from the Book income tax: law & practice by VK Singhania

 

Para 5.6

 

Rule 1: for computing income: Total Income is calculated in accordance with the provisions of the Income Tax Act, as they stand on the First day of April of the assessment year.

For eg: For calculating taxable income for the AY 2012-13, the provisions of the Income Tax Act as on April 1, 2012 are applicable. If an amendment is made w.e.f. April 2, 2012 it is irrelevant for calculating income for the AY 2012-13. Likewise, the law existing during the PY 2011-12 has no relevance for determining the total income for the AY 2012-13.

 

My doubt is whether the provisions of the Income Tax Act as on the First day of April of the Assessment yr or Previous yr are applicable?

AI Summary

Understanding Income Tax Act: Applicability of Provisions on April 1 or Amendments by Finance Act for Assessment Year A query was raised regarding which provisions of the Income Tax Act apply for computing income: those effective on the first day of April of the assessment year or the previous year. The example given was for the assessment year 2012-13, where provisions as of April 1, 2012, are relevant. A response clarified that while typically the provisions on April 1 of the assessment year apply, amendments can be retrospective or come into force at different times, such as June 1. Therefore, the applicability depends on the specific amendments prescribed by the Finance Act.