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Difference between Financial Year (FY) vs Assessment year (AY)

The calendar year in which you received your money is known as the financial year. It starts on April 1 of every calendar year and lasts until March 31 of the following year. The letter "F.Y." is sometimes used to shorten the term "financial year." For the fiscal year, an assessee must calculate and prepare taxes; nevertheless, the income tax return must be submitted the next year, or the Assessment Year.

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Difference between Financial Year (FY) vs Assessment year (AY)

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  1. Financial Year (FY) & Assessment Year (AY) Ensure you understand the difference between VINOD K AGRAWAL & ASSOCIATES, CA

  2. Avoid mixing up the terms AY and FY Taxpayers need be familiar with the terms financial year (FY) and assessment year (AY) in order to properly complete their tax returns. Financial planners and chartered accountants regularly use the words "financial year" and "assessment year" when preparing income tax returns (ITR) for their customers. The distinction between the financial year and the assessment year is seen here.

  3. What is ITR? • To report details about his income and taxes owed or paid during the previous year, a person files an ITR with the Income Tax Department of India. • An ITR must have information that is accurate for the fiscal year that starts on April 1 and ends on March 31 of the following year.

  4. What is Financial Year (FY)? • Your earnings are taxed in India by the Income Tax Department (I-T) once a year for a year. • In India, this 12-month period starts on April 1 and ends on March 31 of the following year. • This time frame, the year in which you earned the income, is referred to as the "financial year" or "fiscal year." • You will therefore be filing an ITR for 2022–2023; the filing date is July 31, 2023. (unless extended by the government).

  5. What is Assessment Year (AY)? • In India, after the fiscal year has ended, people file their ITR the following year. This time frame is known as an assessment year. • The time frame for assessing your preceding year's income for ITR filing purposes is known as an assessment year. • An evaluation year runs from April 1 through March 31 of the subsequent year. • As a result, you will file an ITR for AY 2023–2024

  6. The difference betweenFY & AY The Financial Year is the calendar year or period during which money is earned Simple said, a financial year is when businesses, salaried employees, and senior citizens make money and pay taxes. Tax returns are filed during the assessment year, which comes after the financial year. The next year, or AY, is when the tax department evaluates and assesses the previously obtained revenue.

  7. Thank You Vinod K Agrawal & Associates, CA https://cavkagrawal.business.site/

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