TaxFinancial Glossary
Financial Year
Definition
The 12-month period from April 1 to March 31 used for tax, accounting, and regulatory purposes in India. Income earned during FY 2025-26 (April 2025 to March 2026) is reported in the income tax return filed during AY 2026-27.
Why It Matters
Tax planning, investment deadlines (Section 80C), advance tax payments, and insurance renewals all revolve around the financial year. Last-minute 80C investments in March (a common Indian habit) are less effective than spreading them through the year via SIPs in ELSS.