Mention the Financial Year or Fiscal Year of India

By K Balaji|Updated : September 7th, 2022

The Financial year or fiscal year of India starts on 1 April of a year and lasts till 31st March of the proceeding year (next upcoming year). The financial year helps in framing all the necessary policies, financial rules, and government budget. The government makes the Annual Financial Statement. This statement consists of the government’s main budget document.

Explain Financial Year or Fiscal Year of India

The term Financial Year or the Fiscal Year is defined as the period of time (1 year) in which income is earned. The Annual financial statement of India is documented as the main budget given by the Finance Minister of India. The document depicts the expenses and revenue for the financial year. This document is moved by the legislature and then signed by the President or the chief executive.

Here are the most expected answers to why does financial year in India starts from 1st April and not 1st Jan-

  • The financial year of the UK starts from 1st April. Britishers applied the same concept for their country and for India pre-independence. After independence, India didn’t change the concept.
  • The month of November and December are considered the months of festive seasons. During this period, the inventory is very fast. Also, the employees of a lot of organizations are on vacation.
  • The crop season in India starts in April and ends in March.

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FAQs

  • The term Finacial year refers to the period in which the income is earned. The financial year is sometimes also called the Previous Year for Income Tax purposes.

  • The Financial Year or Fiscal Year of India starts from the 1st April of one year and continues till the 31 st March of the next year. This helps in the formation of effective policies, government budgets, and financial rules.

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