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

Effective date of tax amendments determines which Income Tax provisions apply to an assessment year, not the year's start alone.
The baseline rule treats the Income tax Act as it stands on the first day of the assessment year for computing total income, but this is subject to the amending provision's prescribed commencement; if an amendment is made retrospective or given a specified effective date (including mid year), that commencement provision determines whether the amendment applies to the assessment year.