what is difference between Assessment year & financial year?

Answer 1

ASSESMENT 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.2001-2002 which starts from 1st April 2001 and ends on 31st March 2002. The previous year relevant to this assessment year would be the financial year 2000-2001 starting from 1st April 2000 and ending on 31st March 2001. As the income of the previous year is to be taxed in the assessment year, the income of financial year 2000-2001 will be taxed in Assessment Year 2001-2002. Likewise, income of F.Y.2001-2002 will be taxed in A.Y.2002-2003

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.

Answer 2

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.

Assessment Year start on the very next day of the Financial Year completes.

Answer 3

Assessment Year

Answer 4

The income of a year is taxed in next year. The year in which income is earned is called Financial year and the year in which it is taxed is called Assessment year. Eg. The income of Financial year 2005-06 will be taxed in Assessment year 2006-07. So earn income in a year and pay tax (except some taxes like advance tax) on it and file your return the next year . Also remember that all tax laws are framed for assessment year and not for financial year i.e. reference to any year in Tax laws will means reference to assessment year. Presently we are in Financial year 2006-07 and assessment year 2007-08.

Answer 5

Please note the following and be guided accordingly;_ Financial year 2006-07 is Assessment Year 2007-08 Financial year 2007-08 is Assessment Year 2008-09 AND .......... In all cases it is from 1st April to 31st March

Answer 6

Financial year is the year for which year your accounts belongs to. Now running financial year is 2006-2007 (1.4.2006 to 31.3.2007)

Assessment year is the next year to the financial year in which year your accounts has to be filed to the Income Tax department. For financial year 2006-07, the assessment year is 2007-08.

Answer 7

Financial year is for which you are filing your return, say 2005-06, and Assessment year is in which you file return, i.e, 2006-07 by 31st October 2006.

Answer 8

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what is difference between Assessment year & financial year?

Answer 9

Financial year starts from 1st April and ends on 31st March. Assessment year is the year immediately following the financial year wherein the income of the Financial year is assessed.
financial year, is the given year where u have earned your income..This is a period used for calculating annual income on which you can calculate tax to be paid.
Assessment year is the year in which the income earned is assessed. This is done for filing returns. In other words previous year is the year in which income is earned and following year is assessment year where u file your returns., based on the income what you have earned previous year.

Answer 10

financial year means the the cycle of 12 months which one has to follow to do close books of accounts it can be the calendar yea i.e jan-dec or apr-march etc assesement year means the year in which you are laible to file return to income tax authority fro example the finacial year now is jan-dec, or apr-mar etc 2005-06 and assessement year for it is 2006-07