|Period||Financial Year||Assessment Year|
|1 April 2018 to 31 March 2019||2018-19||2019-20|
|1 April 2017 to 31 March 2018||2017-18||2018-19|
|1 April 2016 to 31 March 2017||2016-17||2017-18|
AY is the assessment year and FY is the financial year. From an income tax perspective, FY is the year in which you earn an income. AY is the year following the financial year in which you have to evaluate the previous year’s income and pay taxes on it.
For instance, if your financial year is from 1 April 2018 to 31 March 2019, then it is known as FY 2018-19. The assessment year for income earned during this period would begin after the financial year ends–that is from 1 April 2019 till 31 March 2020. Hence, the assessment year would be AY 2019-20.
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