Financial Year (F.Y.) in India is a period of 12 months from 1st April to 31st March. 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, in the current financial year 2023 or 2024
| Year | Financial Year (income period) | Assessment Year (taxable period) |
|---|---|---|
| 1st April 19 to 31st March 20 | 2019-20 | 2020-21 |
| 1st April 20 to 31st March 21 | 2020-21 | 2021-22 |
| 1st April 21 to 31st March 22 | 2021-22 | 2022-23 |
| 1st April 22 to 31st March 23 | 2022-23 | 2023-24 |
| 1st April 23 to 31st March 24 | 2023-24 | 2024-25 |
| 1st April 24 to 31st March 25 | 2024-25 | 2025-26 |
Contents of this post
What is a Financial Year?
The 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
- Salary Income if doing a job
- Business income if doing business
- Professional fees if doing any profession
- Income from House property such as rent
- Income from capital gains
- And Income from any Other Source that 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 2023, you will see the financial period will start on 01 April 2023 then the F.Y. will get end on 31 March 2024 for the current FY. 2023-24.
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 the next Year).
For example, if your current year is 2024 then your financial year will start on 01 April 2024 and will end on 31st March 2025.
What is the quarter of the financial year?
A financial year is a period of 12 months from 01 April to 31 March. When a financial year is divided into four parts of 3 months then that is called a Quarter of the financial year.
For example, for the current financial year (1st April 2023 to 31st March 2024). The 4 quarter will be as below-
| Quarter | Period |
|---|---|
| first Quarter | 01 April 2023 to 30th June 2023 |
| Second Quarter | 01 July 2023 to 30th Sept 2023 |
| Third Quarter | 01 Oct 2023 to 31st Dec 2023 |
| Fourth Quarter | 01 Jan 2024 to 31st March 2024 |
What is the 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 2023-24 then the Assessment year will be 2024-25.
For example,
| F.Y. (Financial Year) | A.Y. (Assessment Year) |
|---|---|
| Income generated for the financial year | Income 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. |
| 23-24 F.Y. | 24-25 A.Y. |
| 24-25 F.Y. | 25-26 A.Y. |
What is a Fiscal Year?
The fiscal year and the 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 the financial year or fiscal year for the country as per cia.gov
| COUNTRIES | FISCAL YEAR/ FINANCIAL YEAR |
| Afghanistan | 21 December – 20 December |
| Albania | calendar year |
| Algeria | calendar year |
| American Samoa | 1 October – 30 September |
| Andorra | calendar year |
| Angola | calendar year |
| Anguilla | 1 April – 31 March |
| Antigua and Barbuda | 1 April – 31 March |
| Argentina | calendar year |
| Armenia | calendar year |
| Aruba | calendar year |
| Australia | 1 July – 30 June |
| Austria | calendar year |
| Azerbaijan | calendar year |
| Bahamas, The | 1 July – 30 June |
| Bahrain | calendar year |
| Bangladesh | 1 July – 30 June |
| Barbados | 1 April – 31 March |
| Belarus | calendar year |
| Belgium | calendar year |
| Belize | 1 April – 31 March |
| Benin | calendar year |
| Bermuda | 1 April – 31 March |
| Bhutan | 1 July – 30 June |
| Bolivia | calendar year |
| Bosnia and Herzegovina | calendar year |
| Botswana | 1 April – 31 March |
| Brazil | calendar year |
| The British Virgin Islands | 1 April – 31 March |
| Brunei | 1 April – 31 March |
| Bulgaria | calendar year |
| Burkina Faso | calendar year |
| Burma | 1 April – 31 March |
| Burundi | calendar year |
| Cabo Verde | calendar year |
| Cambodia | calendar year |
| Cameroon | 1 July – 30 June |
| Canada | 1 April – 31 March |
| Cayman Islands | 1 April – 31 March |
| The central African Republic | calendar year |
| Chad | calendar year |
| Chile | calendar year |
| China | calendar year |
| Christmas Island | 1 July – 30 June |
| Cocos (Keeling) Islands | 1 July – 30 June |
| Colombia | calendar year |
| Comoros | calendar year |
| Congo, Democratic Republic of the | calendar year |
| Congo, Republic of the | calendar year |
| Cook Islands | 1 April – 31 March |
| Costa Rica | calendar year |
| Cote d’Ivoire | calendar year |
| Croatia | calendar year |
| Cuba | calendar year |
| Cyprus | calendar year |
| Czechia | calendar year |
| Denmark | calendar year |
| Djibouti | calendar year |
| Dominica | 1 July – 30 June |
| Dominican Republic | calendar year |
| Ecuador | calendar year |
| Egypt | 1 July – 30 June |
| El Salvador | calendar year |
| Equatorial Guinea | calendar year |
| Eritrea | calendar year |
| Estonia | calendar year |
| Eswatini | 1 April – 31 March |
| Ethiopia | 8 July – 7 July |
| European Union | NA |
| Falkland Islands (Islas Malvinas) | 1 April – 31 March |
| Faroe Islands | calendar year |
| Fiji | calendar year |
| Finland | calendar year |
| France | calendar year |
| French Polynesia | calendar year |
| Gabon | calendar year |
| Gambia, The | calendar year |
| Gaza Strip | calendar year |
| Georgia | calendar year |
| Germany | calendar year |
| Ghana | calendar year |
| Gibraltar | 1 July – 30 June |
| Greece | calendar year |
| Greenland | calendar year |
| Grenada | calendar year |
| Guam | 1 October – 30 September |
| Guatemala | calendar year |
| Guernsey | calendar year |
| Guinea | calendar year |
| Guinea-Bissau | calendar year |
| Guyana | calendar year |
| Haiti | 1 October – 30 September |
| Holy See (Vatican City) | calendar year |
| Honduras | calendar year |
| Hong Kong | 1 April – 31 March |
| Hungary | calendar year |
| Iceland | calendar year |
| India | 1 April – 31 March |
| Indonesia | calendar year |
| Iran | 21 March – 20 March |
| Iraq | calendar year |
| Ireland | calendar year |
| Isle of Man | 1 April – 31 March |
| Israel | calendar year |
| Italy | calendar year |
| Jamaica | 1 April – 31 March |
| Japan | 1 April – 31 March |
| Jersey | 1 April – 31 March |
| Jordan | calendar year |
| Kazakhstan | calendar year |
| Kenya | 1 July – 30 June |
| Kiribati | NA |
| Korea, North | calendar year |
| Korea, South | calendar year |
| Kuwait | 1 April – 31 March |
| Kyrgyzstan | calendar year |
| Laos | 1 October – 30 September |
| Latvia | calendar year |
| Lebanon | calendar year |
| Lesotho | 1 April – 31 March |
| Liberia | calendar year |
| Libya | calendar year |
| Liechtenstein | calendar year |
| Lithuania | calendar year |
| Luxembourg | calendar year |
| Macau | calendar year |
| Madagascar | calendar year |
| Malawi | 1 July – 30 June |
| Malaysia | calendar year |
| Maldives | calendar year |
| Mali | calendar year |
| Malta | calendar year |
| Marshall Islands | 1 October – 30 September |
| Mauritania | calendar year |
| Mauritius | 1 July – 30 June |
| Mexico | calendar year |
| Micronesia, Federated States of | 1 October – 30 September |
| Moldova | calendar year |
| Monaco | calendar year |
| Mongolia | calendar year |
| Montenegro | calendar year |
| Montserrat | 1 April – 31 March |
| Morocco | calendar year |
| Mozambique | calendar year |
| Namibia | 1 April – 31 March |
| Nauru | 1 July – 30 June |
| Nepal | 16 July – 15 July |
| Netherlands | calendar year |
| New Caledonia | calendar year |
| New Zealand | 1 April – 31 March note: this is the fiscal year for tax purposes |
| Nicaragua | calendar year |
| Niger | calendar year |
| Nigeria | calendar year |
| Niue | 1 April – 31 March |
| Norfolk Island | 1 July – 30 June |
| North Macedonia | calendar year |
| Northern Mariana Islands | 1 October – 30 September |
| Norway | calendar year |
| Oman | calendar year |
| Pakistan | 1 July – 30 June |
| Palau | 1 October – 30 September |
| Panama | calendar year |
| Papua New Guinea | calendar year |
| Paraguay | calendar year |
| Peru | calendar year |
| Philippines | calendar year |
| Pitcairn Islands | 1 April – 31 March |
| Poland | calendar year |
| Portugal | calendar year |
| Puerto Rico | 1 July – 30 June |
| Qatar | 1 April – 31 March |
| Romania | calendar year |
| Russia | calendar year |
| Rwanda | calendar year |
| Saint Helena, Ascension, and Tristan da Cunha | 1 April – 31 March |
| Saint Kitts and Nevis | calendar year |
| Saint Lucia | 1 April – 31 March |
| Saint Pierre and Miquelon | calendar year |
| Saint Vincent and the Grenadines | calendar year |
| Samoa | June 1 – May 31 |
| San Marino | calendar year |
| Sao Tome and Principe | calendar year |
| Saudi Arabia | calendar year |
| Senegal | calendar year |
| Seychelles | calendar year |
| Sierra Leone | calendar year |
| Singapore | 1 April – 31 March |
| Slovakia | calendar year |
| Slovenia | calendar year |
| Solomon Islands | calendar year |
| Somalia | NA |
| South Africa | 1 April – 31 March |
| Spain | calendar year |
| Sri Lanka | calendar year |
| Sudan | calendar year |
| Suriname | calendar year |
| Sweden | calendar year |
| Switzerland | calendar year |
| Syria | calendar year |
| Taiwan | calendar year |
| Tajikistan | calendar year |
| Tanzania | 1 July – 30 June |
| Thailand | 1 October – 30 September |
| Timor-Leste | calendar year |
| Togo | calendar year |
| Tokelau | 1 April – 31 March |
| Tonga | 1 July – 30 June |
| Trinidad and Tobago | 1 October – 30 September |
| Tunisia | calendar year |
| Turkey | calendar year |
| Turkmenistan | calendar year |
| Turks and Caicos Islands | calendar year |
| Tuvalu | calendar year |
| Uganda | 1 July – 30 June |
| Ukraine | calendar year |
| United Arab Emirates | calendar year |
| United Kingdom | 6 April – 5 April |
| United States | 1 October – 30 September |
| Uruguay | calendar year |
| Uzbekistan | calendar year |
| Vanuatu | calendar year |
| Venezuela | calendar year |
| Vietnam | calendar year |
| Virgin Islands | 1 October – 30 September |
| Wallis and Futuna | calendar year |
| West Bank | calendar year |
| Western Sahara | calendar year |
| Yemen | calendar year |
| Zambia | calendar year |
| Zimbabwe | calendar year |
What is the fiscal year in India?
As we have already discussed above The fiscal year and the 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-month 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.
| M | T | W | T | F | S | S |
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| 8 | 9 | 10 | 11 | 12 | 13 | 14 |
| 15 | 16 | 17 | 18 | 19 | 20 | 21 |
| 22 | 23 | 24 | 25 | 26 | 27 | 28 |
| 29 | 30 | |||||
Why is the Financial Year Important?
The financial year is significant because it serves as the basis for tax calculations and financial planning. It allows entities to track their financial performance and make informed decisions.
What is the Significance of Fiscal Year in Business?
In the business world, the fiscal year aligns with the financial year. It helps companies analyze their financial health, plan budgets, and report earnings to stakeholders and regulatory authorities.
Faqs on Financial year
The financial year is crucial for tax purposes. It determines when individuals and businesses need to file their tax returns and pay any taxes owed.
A short tax year occurs when a business or individual doesn’t operate for the entire financial year. This situation may arise due to startup businesses or closures.
Budgeting is easier with a defined financial year. It allows businesses and individuals to set financial goals and allocate resources efficiently.
A leap year occurs every four years and adds an extra day to the calendar (February 29th). While it doesn’t significantly impact the financial year, it can affect annual calculations slightly.
Financial years can vary internationally. Different countries may have different start and end dates for their financial years, which can impact international business operations.
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