How Is Financial Year Different From Assessment Year: All You Need To Know

Whereas submitting their returns on revenue, many particular person taxpayers get confused between the monetary yr and the evaluation yr. The dearth of readability leads to pointless errors whereas filling the revenue tax return types, resulting in a number of points which are typically confronted by taxpayers. This may be utterly prevented if taxpayers know the clear distinction between the monetary yr and the evaluation yr. Earnings tax return types have mentions of each monetary yr and evaluation yr. Evaluation yr is just the time throughout which the revenue earned within the monetary yr is assessed.

Because of this the evaluation yr is the yr that comes proper after the monetary yr. For instance, taking this yr’s deadline, the final date for submitting revenue tax returns for the fiscal yr 2019-20 with none late charge was January 10, 2021. Nonetheless, all these taxpayers who’ve nonetheless not filed their returns on revenue can nonetheless accomplish that by March 31, 2021. Nonetheless, whereas taxpayers are submitting their revenue tax returns for the monetary yr 2019-20, however the evaluation yr is 2020-21.