Section 3 → Section 3
Previous Year defined
Quick Answer
Section 3 of the Income Tax Act, 1961 (Previous Year defined) corresponds to Section 3 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 3
Under the Income Tax Act, 1961, Section 3 governs previous year defined. The financial year immediately preceding the assessment year.
From 1st April 2026, the same subject sits at Section 3 of the Income-tax Act, 2025 — retained and renumbered as Section 3 of the Income-tax Act, 2025. Retained. Tax is levied on the income earned in the previous year.
For Section 3, the practical impact is rated Low. Status quo.
Sec 3
Provision Summary
The financial year immediately preceding the assessment year.
Sec 3
Provision Summary
Retained. Tax is levied on the income earned in the previous year.
Key Changes & Highlights
- Simplified wording for newly set up businesses.
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Frequently Asked Questions
What is Section 3 of the Income Tax Act, 1961 about?
Section 3 of the Income Tax Act, 1961 covers previous year defined. The financial year immediately preceding the assessment year.
Which section replaces Section 3 in the Income-tax Act, 2025?
Section 3 of the Income Tax Act, 1961 maps to Section 3 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Tax is levied on the income earned in the previous year.
What is the impact of the change to Section 3 under the new tax code?
The transition impact for Section 3 is rated Low. Status quo.
What should I watch out for when Section 3 moves to the 2025 code?
Simplified wording for newly set up businesses. These points are specific to Section 3 (Previous Year defined).
Disclaimer: This mapping of Section 3 (Previous Year defined) to Section 3 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 3 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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