Distinction between Assessment Year and Financial Year

The following table shows the distinction between  the Assessment Year and the Financial Year

               Financial Year

             Assessment Year

 

  • A Financial Year, also known as FY, is the year in which the businesses and organizations all over the world calculate their financial statements.
  • An Assessment Year, also known as AY, is the year in which the companies file their tax returns and pay their taxes.
  • It is the year in which the income is earned.
  •  It is the year in which income earned in the Financial Year is assessed to tax by the Income Tax Department.
  • It comes before the AY and is also known as ‘Previous Year’ for Income Tax purposes.
  • It comes just after the end of Financial Year.
  • It is different in different countries and businesses.
  • It also varies depending upon the Financial Year.
  • A  Financial Year in India commences from 1st April and ends on 31st March. For instance, 1st April 2012 to 31st March 2013 is termed as FY 13.
  • The Assessment Year corresponding to the Financial Year is AY 14.

For any help on ITR Filing feel free to consult the tax experts at Taxraahi. You can file ITR yourself via our ITR software or get CA’s help on filing income tax return. You can also use the option of Business Return, and Bulk Return.

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