Glossary
Assessment year
Apr 5, 2024
What is an assessment year?
The assessment year is the period of 12 months in which an individual's income is calculated for tax purposes. It is a period of 12 months beginning on 1 April and ending on the following 31 March. In simple language, an assessment year means the period during which you assess your earnings and pay tax on it.
Differentiate between the financial year and assessment year
- Financial year: The time period for which a company's accounts are prepared.
- Assessment year: The time period for which a company's tax return is prepared. It's the year that follows the financial year in which you earn an income or make investments.
The year of assessment can be different from your financial year, but it usually is not.