In India we follow the financial year 1 st April to 31 st March. This financial year is a legacy left behind by the British. It was the East India Company which first brought this concept of 1 st April to 31 st March as the Financial year while they were ruling the undivided India. The financial year and assessment year are two key terms in taxation and accounting. The financial year (FY) refers to the 12-month period during which income is earned, commonly from April 1st to March 31st of the next year in India. For example, income earned between April 1, 2023, and March 31, 2024, falls under the financial year 2023–24. What Is a Financial Year ? A financial year (FY) is the 12-month period used by the government, businesses, and individuals for accounting, budgeting, and taxation purposes. In India, the financial year begins on 1st April and ends on 31st March of the following year . For example: Financial Year 2024–25 means the period from 1 April 2024 to 31 March 2025. During this period, people earn income, make investments, and record expenses. After the year ends, the government assesses the income ... What is the Financial Year in India? A Detailed Overview. The books of accounts get updated for a year. However, the beginning date of this time varies from business to business. The terms " financial year " and "assessment year" may have appeared in your reading of a company's financial statements.
