Financial year and Assessment year

Financial year:

The Financial year is the time period which you have earned/received an income in a time period.

Any income earned in the period starting from 1st April to 31st March can be consider as income earned in Financial Year.

Assessment year:

The year which follows the financial year is called Assessment year, where the income is taxed in Assessment year.

Both Financial year & Assessment year which starts from 1st April of the calendar year & concludes on 31st March of the next calendar year.

For example

Income received in the current Financial Year 2021-22, i.e., beginning on April 1, 2021, to March 31, 2022, to be considered the taxable period for the year 2021-2022. This earned income will be taxed in Assessment year of 2022-2023.

The Assessment Year and Financial year for the Recent Year is given below: