Quick Answer: What Is Difference Between Ay And FY?

Which is the current financial year?

The income you earned from 1st April 2020 to 31st March 2021 is the income earned in the current Financial Year (FY) 2020-21.

Also, Any income earned by you for the period starting from 1st April 2020 to 31st March 2021 can be simply stated as income earned in Financial Year (FY) 2020-21..

Can financial year exceed 12 months?

The financial year of a company is usually of 12 months but the same may not be true all the time. (iii) The maximum period of financial year can be fifteen months. … Â However, with the permission of the ROC it can be extended upto eighteen months.

Is financial year change in India?

The government has not extended the current 2019-20 fiscal year and it will end as scheduled on March 31, the finance ministry said Monday. … The finance ministry in a statement said amendments have been made to the Indian Stamp Act by deferring the effective date of applicability from April 1 to July 1, 2020.

What is the normal time limit for accounting year?

12 monthsIn financial accounting the accounting period is determined by regulation and is usually 12 months. The beginning of the accounting period differs according to jurisdiction. For example, one entity may follow the calendar year, January to December, while another may follow April to March as the accounting period.

What does FY 20 mean?

A fiscal year is denoted by the year in which it ends, not in which it starts, so the US federal government fiscal year starting on October 1, 2019 and ending on September 30, 2020 is denoted as the fiscal year 2020 (often abbreviated as FY2020 or FY20), not as fiscal year 2019/20.

Can I file ITR for AY 2020/21 now?

All Income Tax Return Preparation Software for AY 2020-21 are now available for e-Filing. ITR 1, 2, 3, 4, 5 & 7 for AY 2020-21 is now available for e-Filing. ITR 6 will be available shortly.

What is the financial year for assessment year 2020 21?

For income tax purpose, while the FY 2020-21 has begun on April 1 and will end on March 31, 2021, the relevant assessment year (AY) will be AY 2021-22.

What is a financial year in India?

India. In India, the government’s financial year runs from 1 April to 31 March. … The current fiscal year was adopted by the colonial British government in 1867 to align India’s financial year with that of the British Empire. Prior to 1867, India followed a fiscal year that ran from 1 May to 30 April.

What is the meaning of financial year?

A financial year is a period of twelve months, used by government, business, and other organizations in order to calculate their budgets, profits, and losses. Financial year is often used in business to compare with the calendar year.

What is the MAT rate for AY 2020 21?

How to calculate MAT? MAT is equal to 18.5% (15% from AY 2020-21) of Book profits (Plus Surcharge and cess as applicable).

What is the rebate for AY 2020 21?

From the AY 2020-21 rebate u/s 87A (only for Individual) is available only if the Net Total Income < Rs. 5,00,000/-. The quantum of maximum rebate will be Rs. 12500/-....Income tax slabs.Taxable incomeTax RateRs. 2,50,000 to Rs. 5,00,0005%Rs. 5,00,000 to Rs. 10,00,00020%Above Rs. 10,00,00030%1 more row•Aug 10, 2020

Can a company extend its financial year?

The Registrar has power to extend a financial year up to eighteen months in terms of the proviso under section 210(4) of the Act. The company shall make an application in the prescribed e-Form 61 (prescribed by the Notification No. … Financial year extension also requires approval under the Income-tax Act, 1961.

What is assessment and financial year?

An FY starts on 1 April and ends on 31 March. So, if you have worked and earned income in 2017-18, it will be considered the financial year. Assessment year: On the other hand, assessment year (AY) is the year following the financial year, in which your income is assessed.

What is income tax slab for AY 2020 21?

INCOME SLAB AND TAX RATES FOR F.Y. 2020-21/A.Y 2021-22Taxable incomeTax RateUp to Rs. 2,50,000NilRs. 2,50,001 to Rs. 5,00,0005%Rs. 5,00,001 to Rs. 10,00,00020%Above Rs. 10,00,00030%

Can you extend a company year end?

Extending The Annual Return Date This will give the company the maximum amount of time to produce, approve and file its financial statements. The annual return date of the company can be extended by simply filing the annual return together with a statutory form B73 to extend the annual return date.