Q: Why does the assessment year start from 1st April ?

Ans: Under section 1 of the Income Tax Act, 1961, the act is a central act and it is applicable to whole of India. 

This act is called the Income Tax Act, 1961, and it came into force on April 1st, 1962. 

Since it came into force on April 1st, 1961, the accessment year is 1st April 1962 to 1st April, 1963 and the previous year is Ist April 1961 to 1st April, 1962.  So ,the government became eligible for tax collection first time on 1st April, 1962. We would discuss about tds and advanced tax later.

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