why books of accounts are maintained for financial year april to march?


1 Answer(s)


The answer is simple under Income Tax Act 1961, they have defined Assessment year and Previous Year. Assessment year means a year starting from 1st of April till the following 31st march, in which the income of the previous year will be taxed. A year according to income tax act starts from 1st of April till following 31st of March.So company's in India follow this year as a financial year.