what is financial year in india

what is financial year in india

A financial year, also known as a fiscal year, is a 12-month period that a business or organization uses to report its financial performance. The financial year can start and end on any date, but it’s typically aligned with the calendar year (January 1 to December 31) in many countries.

The financial year is used to calculate and report taxes, and it’s also important for financial reporting purposes. For example, publicly traded companies are required to report their financial results to the government and the public on a quarterly and annual basis, and they typically use the fiscal year as the basis for their financial reports.

In some cases, a business or organization may choose to use a different fiscal year from the calendar year. For example, they may use a fiscal year that aligns with their industry, or they may use a fiscal year that aligns with their busiest season. Ultimately, the choice of a financial year depends on the needs and goals of the organization.