Financial year: Companies may select a financial year that

Companies may select a financial year that aligns with their business cycles or industry norms to facilitate financial planning and reporting. Governments may choose a fiscal year that allows for better budget management and allocation of resources to meet public needs. Learn what FY stands for in finance and accounting, and how it differs from AY. Find out the start and end dates of FY25 and FY26 in India, and the importance of financial year for tax, budget, and reporting. A fiscal year (FY) is a 52- or 53-week or 12-month period used by a company or government for budget and accounting purposes and as a schedule for financial statements. Financial Year (FY) and Assessment Year (AY) are two important terms used in Income Tax, often confused among tax payers. Assessment year comes immediately after the financial year . It is the year in which tax is calculated and paid by the taxpayer.