The Financial Year (FY): What is it?
Companies all across the world create their income statements and balance sheets throughout a fiscal year, also known as a financial year (FY). Each country has a different financial year length. The fiscal year in India begins on April 1st and concludes on March 31st. It stands for the time frame during which money is earned. Businesses file their income tax returns at the end of the fiscal year and pay taxes in the Assessment Year (AY) that follows.
What is the current fiscal year in India?
The current fiscal year, also known as India’s financial year, began on April 1, 2024, and will conclude on March 31, 2025. Indian businesses will prepare financial accounts of their operations and other activities throughout the course of these 12 months.
For what reason does the fiscal year matter?
In India, the government utilizes the fiscal year to forecast its overall revenue and expenses, establish economic and financial objectives, and create the budget’s action plan. Additionally, businesses use this period to evaluate their earnings.
