Understanding Calendar Year vs. Financial Year: Where and How Are They Used?

Dear all,

Kindly let me know about the calendar year or financial year. Could you explain in detail where it is used?

Thanks,
Nirmala Kumari
HRD

Dear Meenu,

The calendar year starts from the 1st of January and ends on the 31st of December, whereas the financial year starts from the 1st of April and ends on the 31st of March. The usage of them is not specific, but many companies use either of them for the calculation of salaries. It is also observed that many banks and financial institutes follow the financial year only.

This is all the information I can provide. I hope it is helpful to you.

Hi Nirmala,

Shweta is right. Most of the calculations related to the HR department are with respect to the calendar year, i.e., from 01 January to 31 December. The financial year starts from 1 April.

Thanks

It's exactly what others are describing.

HR works on a calendar year basis, whereas the Accounts department works on a financial year basis.

Dear Sweta,

Thank you for this information. Sweta, could you please send me the details of all the compliances for PF, ESIC, and the Factory Act? I mean all the annually and monthly compliance submission dates.

Please send me that information.

Thanks