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Define Assessment year and Previous Year.

Assessment year- It is a 12-month period that begins on 1st April and ends on 31st March. For example 1st April 2011 to 31st March 2012.

Previous Year- This is the year immediately preceding the assessment year. For example, income earned between 1st April 2010 and 31st March 2011 is assessed or charged to tax for A.Y. 2011-2012.


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