Guidelines for Fiscal Year (FY) with Web Online CA
Enter Customer Details
Welcome to the Web Online CA
Authorized by Income Tax Department "e-Return Intermediary (ERI)" are entities who are authorized to e-file Income Tax Returns on behalf of taxpayers.
Registered with Startup India is duly certified under GOI's Startup India scheme.
Supported by iStart (Government of Rajasthan. Initiative for startups).
Supporting Government Making India Digital.
25 Lakh+ ITRs Filed Successfully with Accuracy and Trust.
40,000+ partners across India, and the number is growing every day.
Covering 19,000+ Pincodes Across India.
Assistance in e-Verification of the Filed Returns.
Pricing Summary
Web Online CA
Fee
Rs. 598/-
Complete By*
22-Feb-2026
Documents Required
Form 16
Bank Statement
Details of Other Income
Share
Fiscal Year: Definition, Examples and Importance in India
By Web Online CA
3 min read
Updated On 21-February-2026
What is Fiscal Year?
A fiscal year is 12-month reporting period for companies, organizations and governments use for financial planning and budgeting. A period that is set from January 1 to December 31 is called a calendar year. Although many organizations follow the calendar year, a fiscal year need not start at the beginning of the calendar year, it must be a yearlong period. The fiscal year can start at any point in the year and end 12 months later, for example, June 1 to May 31.
Fiscal entirely depends on the operation and revenue cycle of the company or firm. It is usually combined with the specific year, for example as FY 2018 or FY18.
Importance of Fiscal Year
Fiscal years are important because they allow an establishment to understand the business operation from time to time and ready to better prepare for its upcoming year. It serves as a timeline to financial reports, external audits, and federal tax filings and analyze financial documents. A fiscal year provides a stipulated time to coincide with planning, budgeting, revenue cycles and expenses of a business.
The time frame mostly aligns with the deadline of taxpayers to settle their dues. So, it is not necessary to undertake double works on filing.
How to Calculate a Fiscal Year?
You can calculate the duration of the fiscal year by counting the number of days between the start and end dates, or by subtracting the start year from the end year and adding one. It is important to determine the busiest month of a business operation and end the fiscal year right after the peak of business activity is achieved. An expert consultation on the business performances and outcomes can ease the process. A fiscal year can be framed keeping these considerations in mind.
Many businesses and organizations have fiscal years that don't coincide with the calendar year. To calculate a custom fiscal year, you need to determine the start and end dates.
If the fiscal year aligns with the calendar year, it starts on January 1st and ends on December 31st. This is the simplest form of fiscal year.
Frequently Asked Questions
A Fiscal year is a 12-month accounting period used by companies or governments to prepare financial reports, budgets, and analyze performance.
A fiscal year can begin and end on any dates, while a calendar year always runs from January 1 to December 31.
Businesses use a fiscal year to align their financial reporting with operational cycles, seasonal trends, or tax planning requirements.
Yes. Companies often have the flexibility to set a fiscal year that best suits their reporting needs, as long as it covers 12 months.
Common periods include April 1 to March 31, October 1 to September 30, and others that align with business cycles.
