In the Indian context, a Financial Year (FY) refers to the 12-month period used by the government and businesses for accounting, budgeting, and tax purposes. It starts on April 1st of one year and ends on March 31st of the following year. For example, the Financial Year 2024–25 begins on April 1, 2024, and ends on March 31, 2025.
Understanding the Financial Year is crucial for small business owners, startups, and self-employed professionals because all income, expenses, tax calculations, and statutory filings are based on this timeline. Your income tax return (ITR), Goods and Services Tax (GST) filings, TDS payments, and annual business audits must align with the Financial Year.
When registering a new business or applying for GST, your records will be maintained according to the current Financial Year. Staying compliant with Financial Year timelines helps you avoid penalties, simplifies audits, and ensures smooth financial management.
If your business is registered under GST, your monthly, quarterly, and annual returns are all tracked by the Financial Year. For guidance on GST compliance and timely filings, you can explore tailored support at FinTax24’s GST Solutions.
In summary, the Financial Year is the foundation for all financial and tax-related activities in India, making it essential to understand and follow for successful business operations.