Financial Year: What is the financial year in India

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Financial Year (F.Y.) in India is a period of 12 months from 1st April to 31st March. And it is a period for generating income from any source which will be taxable in the next year or assessment year (A.Y.) by the government of India. And which is not a Calendar year (1st Jan to 31st Dec). The financial year ends on 31st March every year in India.

For example, the current financial year 2022 or 2023

YearFinancial Year
(income period)
Assessment Year
(taxable period)
1st April 19 to 31st March 202019-202020-21
1st April 20 to 31st March 212020-212021-22
1st April 21 to 31st March 222021-222022-23
1st April 22 to 31st March 232022-232023-24

What is Financial Year?

Financial Year is a period of 12 months ( from 01 April to 31 March) in which the public use to earn money through any type of income source such as

  1. Salary Income if doing a job
  2. Business income if doing business
  3. Professional fees if doing any profession
  4. Income from House property such as rent
  5. Income from capital gains
  6. And Income from any Other Source which you have.

The financial year can be less than 12 months if a new setup is started.

When does the financial year end in India?

In India, the Financial year gets to end on 31st March every year.

for example- for the Calendar year 2022, you will see the financial period will start from 01 April 2022 then the F.Y. will get end on 31st March 2023 for the current f.y. 2022-23.

Is the financial year will be the same in the world?

No, The financial year can be variable or different according to the government of the country. Because every country has different income tax rules. So that countries can have a different financial year or fiscal year.

What is the current financial year?

The current financial year is the current period from 1st April of the (current year) up to 31st March of (Next Year).

For example, if your current year is 2022 then your financial year will start on 01 April 2022 and will end on 31st March 2023.

What is the quarter of the financial year?

A financial year is a period of 12 months from 01 April to 31 March. And When a financial year is divided into four-part of 3 months then that is called a Quarter of the financial year.

For example, for the current financial year (1st April 2022 to 31st March 2023). the 4 quarter will be as below-

QuarterPeriod
first Quarter01 April 2022 to 30th June 2022
Second Quarter01 July 2022 to 30th Sept 2022
Third Quarter01 Oct 2022 to 31st Dec 2022
Fourth Quarter01 Jan 2023 to 31st March 2023

What is Assessment Year?

The Assessment year is the next financial year of the current financial year in which tax is assessed for the financial year. if the current financial year is 2022-23 then the Assessment year will be 2023-24.

For example,

F.Y. (Financial Year)A.Y. (Assessment Year)
Income generated for the financial yearIncome taxed for the financial year
19-20 F.Y.20-21 A.Y.
20-21 F.Y.21-22 A.Y.
21-22 F.Y.22-23 A.Y.
22-23 F.Y.23-24 A.Y.

What is a Fiscal Year?

The fiscal year and a financial year are synonyms for each other. These both are a period of 12 months for accounting, budgeting, or financial reporting. India uses the term financial year for its financial reporting and on the other hand, other countries use the term fiscal year for their financial reporting.

So, the fiscal year is a period of 12 months for reporting financial statements of accounts and budgets. And it can be different for the different countries.

Such as financial year or fiscal year for the country as per cia.gov

COUNTRIESFISCAL YEAR/ FINANCIAL YEAR
Afghanistan21 December – 20 December
Albaniacalendar year
Algeriacalendar year
American Samoa1 October – 30 September
Andorracalendar year
Angolacalendar year
Anguilla1 April – 31 March
Antigua and Barbuda1 April – 31 March
Argentinacalendar year
Armeniacalendar year
Arubacalendar year
Australia1 July – 30 June
Austriacalendar year
Azerbaijancalendar year
Bahamas, The1 July – 30 June
Bahraincalendar year
Bangladesh1 July – 30 June
Barbados1 April – 31 March
Belaruscalendar year
Belgiumcalendar year
Belize1 April – 31 March
Benincalendar year
Bermuda1 April – 31 March
Bhutan1 July – 30 June
Boliviacalendar year
Bosnia and Herzegovinacalendar year
Botswana1 April – 31 March
Brazilcalendar year
The British Virgin Islands1 April – 31 March
Brunei1 April – 31 March
Bulgariacalendar year
Burkina Fasocalendar year
Burma1 April – 31 March
Burundicalendar year
Cabo Verdecalendar year
Cambodiacalendar year
Cameroon1 July – 30 June
Canada1 April – 31 March
Cayman Islands1 April – 31 March
The central African Republiccalendar year
Chadcalendar year
Chilecalendar year
Chinacalendar year
Christmas Island1 July – 30 June
Cocos (Keeling) Islands1 July – 30 June
Colombiacalendar year
Comoroscalendar year
Congo, Democratic Republic of thecalendar year
Congo, Republic of thecalendar year
Cook Islands1 April – 31 March
Costa Ricacalendar year
Cote d’Ivoirecalendar year
Croatiacalendar year
Cubacalendar year
Cypruscalendar year
Czechiacalendar year
Denmarkcalendar year
Djibouticalendar year
Dominica1 July – 30 June
Dominican Republiccalendar year
Ecuadorcalendar year
Egypt1 July – 30 June
El Salvadorcalendar year
Equatorial Guineacalendar year
Eritreacalendar year
Estoniacalendar year
Eswatini1 April – 31 March
Ethiopia8 July – 7 July
European UnionNA
Falkland Islands (Islas Malvinas)1 April – 31 March
Faroe Islandscalendar year
Fijicalendar year
Finlandcalendar year
Francecalendar year
French Polynesiacalendar year
Gaboncalendar year
Gambia, Thecalendar year
Gaza Stripcalendar year
Georgiacalendar year
Germanycalendar year
Ghanacalendar year
Gibraltar1 July – 30 June
Greececalendar year
Greenlandcalendar year
Grenadacalendar year
Guam1 October – 30 September
Guatemalacalendar year
Guernseycalendar year
Guineacalendar year
Guinea-Bissaucalendar year
Guyanacalendar year
Haiti1 October – 30 September
Holy See (Vatican City)calendar year
Hondurascalendar year
Hong Kong1 April – 31 March
Hungarycalendar year
Icelandcalendar year
India1 April – 31 March
Indonesiacalendar year
Iran21 March – 20 March
Iraqcalendar year
Irelandcalendar year
Isle of Man1 April – 31 March
Israelcalendar year
Italycalendar year
Jamaica1 April – 31 March
Japan1 April – 31 March
Jersey1 April – 31 March
Jordancalendar year
Kazakhstancalendar year
Kenya1 July – 30 June
KiribatiNA
Korea, Northcalendar year
Korea, Southcalendar year
Kuwait1 April – 31 March
Kyrgyzstancalendar year
Laos1 October – 30 September
Latviacalendar year
Lebanoncalendar year
Lesotho1 April – 31 March
Liberiacalendar year
Libyacalendar year
Liechtensteincalendar year
Lithuaniacalendar year
Luxembourgcalendar year
Macaucalendar year
Madagascarcalendar year
Malawi1 July – 30 June
Malaysiacalendar year
Maldivescalendar year
Malicalendar year
Maltacalendar year
Marshall Islands1 October – 30 September
Mauritaniacalendar year
Mauritius1 July – 30 June
Mexicocalendar year
Micronesia, Federated States of1 October – 30 September
Moldovacalendar year
Monacocalendar year
Mongoliacalendar year
Montenegrocalendar year
Montserrat1 April – 31 March
Moroccocalendar year
Mozambiquecalendar year
Namibia1 April – 31 March
Nauru1 July – 30 June
Nepal16 July – 15 July
Netherlandscalendar year
New Caledoniacalendar year
New Zealand1 April – 31 March note: this is the fiscal year for tax purposes
Nicaraguacalendar year
Nigercalendar year
Nigeriacalendar year
Niue1 April – 31 March
Norfolk Island1 July – 30 June
North Macedoniacalendar year
Northern Mariana Islands1 October – 30 September
Norwaycalendar year
Omancalendar year
Pakistan1 July – 30 June
Palau1 October – 30 September
Panamacalendar year
Papua New Guineacalendar year
Paraguaycalendar year
Perucalendar year
Philippinescalendar year
Pitcairn Islands1 April – 31 March
Polandcalendar year
Portugalcalendar year
Puerto Rico1 July – 30 June
Qatar1 April – 31 March
Romaniacalendar year
Russiacalendar year
Rwandacalendar year
Saint Helena, Ascension, and Tristan da Cunha1 April – 31 March
Saint Kitts and Neviscalendar year
Saint Lucia1 April – 31 March
Saint Pierre and Miqueloncalendar year
Saint Vincent and the Grenadinescalendar year
SamoaJune 1 – May 31
San Marinocalendar year
Sao Tome and Principecalendar year
Saudi Arabiacalendar year
Senegalcalendar year
Seychellescalendar year
Sierra Leonecalendar year
Singapore1 April – 31 March
Slovakiacalendar year
Sloveniacalendar year
Solomon Islandscalendar year
SomaliaNA
South Africa1 April – 31 March
Spaincalendar year
Sri Lankacalendar year
Sudancalendar year
Surinamecalendar year
Swedencalendar year
Switzerlandcalendar year
Syriacalendar year
Taiwancalendar year
Tajikistancalendar year
Tanzania1 July – 30 June
Thailand1 October – 30 September
Timor-Lestecalendar year
Togocalendar year
Tokelau1 April – 31 March
Tonga1 July – 30 June
Trinidad and Tobago1 October – 30 September
Tunisiacalendar year
Turkeycalendar year
Turkmenistancalendar year
Turks and Caicos Islandscalendar year
Tuvalucalendar year
Uganda1 July – 30 June
Ukrainecalendar year
United Arab Emiratescalendar year
United Kingdom6 April – 5 April
United States1 October – 30 September
Uruguaycalendar year
Uzbekistancalendar year
Vanuatucalendar year
Venezuelacalendar year
Vietnamcalendar year
Virgin Islands1 October – 30 September
Wallis and Futunacalendar year
West Bankcalendar year
Western Saharacalendar year
Yemencalendar year
Zambiacalendar year
Zimbabwecalendar year

What is the fiscal year in India?

As we have already discussed above The fiscal year and a financial year are synonyms for each other. These both are a period of 12 months for accounting, budgeting, or financial reporting.

So, We can understand that the period of 12 months from 1st April to 31st March is a fiscal year or financial year in India.

What is the calendar year?

The calendar year is a 12 months period that always starts from the day of the new year. And always the new year starts on 1st Jan and get ends on 31st Dec before the new year. So the calendar year is always 1st Jan to 31st Dec.

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