A 12-month period used by businesses and governments for financial reporting, budgeting, and tax purposes, which may differ from the calendar year.
The fiscal year (also called financial year or FY) is the accounting period for annual financial statements and tax filings. In India, the fiscal year runs from April 1 to March 31 (e.g., FY 2025-26 = April 2025 to March 2026). The corresponding assessment year (AY) is the following year when taxes are assessed. Different countries use different fiscal years — US companies often use Jan-Dec, UK uses Apr-Mar (like India), and Australia uses Jul-Jun. Companies can choose their fiscal year based on business seasonality.
For Indian FY 2025-26: Financial year starts April 1, 2025 and ends March 31, 2026. Tax returns for this period are filed during Assessment Year 2026-27 (July 2026 deadline).
Ensures accurate financial reporting and record-keeping
Helps maintain regulatory and tax compliance
Enables better-informed business decisions
Improves operational efficiency and cash flow management
In India, all companies must follow April-March as the fiscal year for tax purposes. However, companies listed abroad or subsidiaries of foreign companies may maintain a different year for group reporting, with a separate Indian tax year.
Fiscal year (FY) is when income is earned (Apr 2025 – Mar 2026 = FY 2025-26). Assessment year (AY) is when taxes on that income are assessed/filed (Apr 2026 – Mar 2027 = AY 2026-27). AY is always one year after FY.
A financial statement that summarizes a company's revenues, costs, and expenses over a specific period to show net profit or loss.
A financial statement that shows a company's assets, liabilities, and equity at a specific point in time.
Journal entries made at the end of an accounting period to transfer balances of temporary accounts (revenue, expenses) to permanent accounts (retained earnings).
A financial plan that estimates income and expenses over a specific future period, used to guide spending and resource allocation.
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