Basic Concept of Income Tax

1) Previous Year (P.Y)

A Completed Financial year i.e. (1st April to 31st March) is known as Previous Year

Suppose today date is 5th April then previous year will be completed financial year
i.e. 1st April 2013 till 31st march 2014

2) Assessment Year (A.Y)

Is incomplete financial year or running financial year between ( 1st April to 31 st March

Suppose today date is 5th April then Assessment year will be running financial year
i.e. 1st April 2014 till 31st march 2015

3) Gross Total Income

1)Salary Income
2)House Property Income
3)Capital Gain
4) Income From Other Source
5) Business/Profession Income

Gross Total Income

In short Gross Total Income is total income completed under above 5 heads of income before deduction under chapter VI i.e. 80 C to 80U