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Difference between Financial year and assessment year

28 January 2023

Dear Chartered Accountants and knowledgeable person

Now 2023 , my officer told to me take last 3 AY of ITR computation...so now for which year I have to take plse help me for last three AY years????

And also please explain the AY and FY

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6 Replies

Prashant Daga (194 Points)
Replied 28 January 2023

AY 2020-21 AY 21-22 & AY 22-23
Financial year means accounting year I.e April to March and assessment year jis year me income ka assessment Hota h. in simple language next year of Financial year example FY 22-23 ke liye assessment year 23-24 hoga

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MPR Sanjay Kumar (3113 Points)
Replied 28 January 2023

Thank you so much @ prasanth daga

sabyasachi mukherjee (27537 Points)
Replied 29 January 2023

In income tax parlance previous year is the accounting year.
assesment year is the next year.

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prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 29 January 2023

In the Financial year which is from 1st April 2022 to 31st March 2023 , you pay all your Income tax liabilities by way of Advance Tax , TDS , self assessment tax etc.

Assessment year which is from 1st of April 2023 to 31 March 24 , all your tax liabilities paid in the financial year 22-23 , will be assessed by the Income tax department , therefore it is assessment year. Also in section 2(9) of the income tax Act define assessment year.

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