Define Income Year And Assessment Year

Both fy and ay start on 1 april and end on 31 march.

Define income year and assessment year. Year of assessment ya refers to the year in which income tax is calculated and charged. This is the time in which the income earned during fy is assessed and taxed. For ya 2020 the assessment is for income earned from 1 jan 2019 to 31 dec 2019. Assessment year is the following year in which this income is assessed and taxed.

The assessment year is the year following the income year in which the income is evaluated. Assessment year simply means the year in which the assessment of the income of an assessee for the previous year is carried out in order to determine the tax. Abc limited s previous financial year 2019 20 is from 1st april 2019 to 31st march 2020. The assessment year ay is the year that comes after the fy.

For instance fy 2019 20 and ay 2020 21 are one and the same.