What’s the difference between assessment year and income year?
The Income Year/financial year(FY ) is the previous year, it is the year in which you have earned the income. In Bangladesh Income Year starts from 1st July of every year and ends 30 June of next year that is a period of 12 months. For example, if you have had an income between 1st July 2016 and 30th June 2017, then 2016-17 will be referred to as FY.
And the assessment year(AY) is the year in which your tax liability will be calculated on the previous year’s income and you file tax return forms. That is, it is the year in which the income that you have earned in the financial year that just ended will be evaluated. For example, if your financial year is from 1st July 2016 to 30 June 2017, then it is known as FY2016-17 and the assessment year for income earned during this period would begin after the financial year ends–that is on 1st July 2017. Hence, the assessment year would be AY2017-18.