The fiscal year across the globe usually starts from 1st January and ends on 31st December. However this period differs from country to country. India both the fiscal year and the financial year start from 1st April and end on 31st March. As per the Income Tax Act, 1961 there are 2 tax years, financial year and assessment year. Both the FY and AY start from 1st April and end on 31st March. The financial year is the same as the fiscal year but the assessment year is the succeeding year of the financial year. Both the FY/ fiscal year and AY are a period of 12 months. Example - For the fiscal year / financial year 1st April 2020- 31st March 2021, the assessment year is 1st April 2021- 31st March 2022