Question

What is difference between accounting year and financial year?

Answer 1

Financial yearis a period of 12 months starting from 1st April through 31st March. For example last financial yearwas from 1st April 2014 to 31st march 2015. Assessment year is the 12 months periodstarting immediately after the financial year(FY). So for financial year14-15, the assessment year (AY) will be 1st April 2015-31st march 2016. The income of any FY will be assessed and tax will be paid in the AY. So for theincome earnedin FY 14-15, taxes will be levied in AY 15-16.

Answer 2

ANSWER
.........
FINANCIAL YEAR.

1. THE TIME OF THE FINANCIAL YEAR IS 12 MONTH.
STARTS FROM 1 APRIL TO 30 MARCH.

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ACCOUNTING YEAR
...
1. THE PERIOD OF THE ACCOUNT IS 12 MONTH BUT
IT'S TIME IS IMMEDIATELY AFTER THAT FINANCIAL YEAR