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Section 3 — Definition of "tax year"
In plain terms: This section defines "tax year", the period for which income is taxed. It is the twelve months of the financial year starting on 1 April. If a business or profession is newly set up, or a new source of income comes into existence during a financial year, the tax year for it runs from that date to the end of that financial year, so it can be shorter than twelve months.
(1) For the purposes of this Act, "tax year" means the twelve months period of the financial year commencing on the 1st April.
(2) In the case of a business or profession newly set up, or a source of income newly coming into existence in any financial year, the tax year shall be the period beginning with--
(a) the date of setting up of such business or profession; or
(b) the date on which such source of income newly comes into existence, and ending with the said financial year.