The financial year in India begins on 1 April and ends on 31 March. This calendar was introduced by the British before India gained independence in 1947. Traditionally, India observed a different calendar for its crop season, which falls in November and December. However, the BJP-ruled state of Madhya Pradesh made a decision last week to change the calendar.
The financial year in India is divided into two parts: the assessment year and the financial year. Every earning individual should know the difference between them. The assessment year helps you understand how the taxation system works. It also helps you understand financial control. Basically, financial control refers to the policies and procedures used to manage one’s finances. There are several types of financial controls in India. These include the following: the budget, the financial statement, and the taxation system.
Most countries adopt a fixed 12-month period for their accounting, or financial, year. This standard calendar is used by governments, businesses, and investors, as well as taxpayers. The Indian government, businesses, and investors use the April-March financial year. The British adopted this calendar in 1867 and other British colonies followed the same practice. Prior to this change, the fiscal year in India ran from May 1 to April 30.
The assessment year in India is the year in which an individual’s income is assessed and taxed by the income tax department. In India, this year follows the financial year. For instance, if a person has a new job or makes a new investment, he or she will not be able to determine whether or not he or she has earned any income in that particular year. For this reason, it’s essential to select the correct assessment year when filing income tax returns.
Another important aspect to consider when filing taxes is the calendar year. India’s financial year begins on April 1 and ends on March 31. It is commonly abbreviated as FY. In Hindi, the financial year is called vittiiiy vrss. If your income starts in April 2018, your tax return will be due on March 31 of the following year.
While filing income tax returns is an important step to reduce the tax burden, many people don’t realize that the assessment year follows the financial year. In some states, income is taxed before it is earned. The assessment year also includes any uncertain circumstances. The new tax policy will make filing income tax returns a bit more challenging.
In India, the assessment year is the next year after the financial year, which is also called the assessment year. For the I-T purposes, the assessment year runs from April 1 to March 31. This is similar to the calendar year, but is used to refer to the same timeframe.