A confusion regarding the meaning of ‘financial year' arose among the financial executive and accountant of a company. Both were having different…

Financial Year: According to Section 3 (21) of the General Clauses Act, 1897, financial year shall mean the year commencing on the first day of April. The term Year has been defined under section 3 (66) as a year reckoned according to the British calendar. Thus, as per the General Clauses Act, 1897, year means calendar year which starts from January to December. Difference between Financial Year and Calendar Year: Financial year starts from first day of April, but Calendar Year starts from first day of January.