In Tax filing these two terms are very often used and individuals often confuse between them. Every Financial year and Assessment year starts at 1st April and ends by following year’s 31stMarch. Assessment year comes after Financial year.
What is Financial year?
The year in which you earn an income is termed as financial year.
What is Assessment year?
The year following the Financial year in which the income is evaluated or assessed is termed Assessment year.
Example with recent year:
Year
|
Financial Year
|
Assessment Year
|
1 April 2013 to 31 March 2014
|
2013-14
|
2014-15
|
1 April 2014 to 31 March 2015
|
2014-15
|
2015-16
|
1 April 2015 to 31 March 2016
|
2015-16
|
2016-17
|
