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What is the difference between a financial year and an assessment year?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 pranesh asked about 3 years ago

What is the difference between a financial year and an assessment year?

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5 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Ashika answered over 2 years ago

ASSESSMENT YEAR Assessment Year’ is the period of 12 months commencing from the 1st date of April and ending on the 31st day of March next year. `Previous Year’ is the financial year immediately preceding the assessment year. For instance, the current assessment year is A.Y.2015-2016 which starts from 1st April 2014 and ends on 31st March 2015. The previous year relevant to this assessment year would be the financial year 2014-2015 starting from 1st April 2014 and ending on 31st March 2015. As the income of the previous year is to be taxed in the assessment year, the income of financial year 2014-2015 will be taxed in Assessment Year 2015-2016. Likewise, income of F.Y.2015-2016 will be taxed in A.Y.2016-2017. FINANCIAL YEAR A fiscal year (or financial year or accounting reference date) is a 12-month period used for calculating annual ("yearly") financial reports in businesses and other organizations. In many jurisdictions, regulatory laws regarding accounting require such reports once per twelve months, but do not require that the twelve months constitute a calendar year (i.e. January to December).

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Gabani Kuldip answered about 3 years ago

Hello friends, ## previous year ## Previous year is the financial year in which income is earned. ## Assessment year ## Assessment year is the financial year in which tax is paid. ## previous year ## Previous year precedes assessment year. ## Assessment year ## Assessment year succeeds previous year. ## previous year ## All previous year whether first or subsequent shall always end on 31st of march. However start of first previous year shall depend upon the existence of source of income. ## Assessment year ## Assessment year always starts from 1st of April and ends on 31st of march. ## previous year ## The period of previous year is of maximum of 12 months. It can exist even for a day if the source of income newly coming into existence, in the said financial year. I.e. on 31st March. ## Assessment year ## The period of assessment year is FIXED 12 months. Hope the answer is helpful.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Dimple answered about 3 years ago

**DIFFERENCE BETWEEN A FINANCIAL YEAR AND AN ASSESSMENT YEAR:-** -Financial year is the year of which income is being assessed whereas assessment year is the year in which income of a financial year is assessed. -For every financial year, assessment year is the year just previous to the year of assessment. -Return of Income of a Financial year is required to be filed in its assessment year. -Current Assessment year is 2015-16 so its Financial Year would be the previous year that is 2014-15. -A Financial year and an assessment year both are in financial year that is 1st april to 31st March.

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Picsjoin 2017224123730582 Archana answered about 3 years ago

Hie Pranesh, Difference between A.Y & F.Y. is :- **ASSESSMENT YEAR** Assessment Year’ is the period of 12 months commencing from the 1st date of April and ending on the 31st day of March next year. `Previous Year’ is the financial year immediately preceding the assessment year. For instance, the current assessment year is A.Y.2015-2016 which starts from 1st April 2014 and ends on 31st March 2015. The previous year relevant to this assessment year would be the financial year 2014-2015 starting from 1st April 2014 and ending on 31st March 2015. As the income of the previous year is to be taxed in the assessment year, the income of financial year 2014-2015 will be taxed in Assessment Year 2015-2016. Likewise, income of F.Y.2015-2016 will be taxed in A.Y.2016-2017. **FINANCIAL YEAR** A fiscal year (or financial year or accounting reference date) is a 12-month period used for calculating annual ("yearly") financial reports in businesses and other organizations. In many jurisdictions, regulatory laws regarding accounting require such reports once per twelve months, but do not require that the twelve months constitute a calendar year (i.e. January to December). A new company or business has to decide at the beginning on which month its fiscal year will start. In the United States, the business' tax year is the same as its fiscal year, and must file its tax return by the 15th day of the third month following the fiscal year end. That is, if the fiscal year ends on December 31, then the return is due by March 15. The financial results presented to shareholders are therefore a "photograph" of company's accounts at the accounting reference date.

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Open uri20170510 32134 117xyds?1494421825 dhanashri answered about 3 years ago

hello assessment year is a period of 12 month from the 1st April to 31st march of the next year. and the previous years is immediate preceding the assessment year. financial year is also called as fiscal year or previous year. it is the year in which a company earned its income. and that income is assesed in the next year or the assessment year. that is income is taxed in assessment year. the assessment year for 1st April 2014 to 31st march 2015 is 1st april 2015 to 31st march 2016.

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