Financial Year-End and your Shar’ee and Dunyawi Responsibilities.
مالی سال کا اختتام اور آپ کی شرعی اور دنیاوی ذمہ داریاں۔
What is the Financial Year-End in India?
In India, the financial year (FY) starts on April 1st and ends on March 31st of the following year. This is the period during which businesses, individuals, and the government record financial transactions for taxation and accounting purposes. With the financial year in India concluding on March 31st, individuals and businesses across various income groups must engage in crucial financial assessment and strategic planning. Whether you are a salaried employee, a business owner, a farmer, a retiree, an NRI, a freelancer, or a corporate entity, this period serves as a vital checkpoint to review earnings, investments, purging your income, tax liabilities, and financial goals.
It is important to understand that countries may use different fiscal and assessment years. For example, in India, the financial year typically runs from April 1st to March 31st of the following year. Other countries like the United States may use January 1st as their start date for a new fiscal year.
Financial Wisdom:
“Failing to plan is planning to fail.” The financial year-end is not just about tax deductions but a chance to realign your savings and investments to secure your financial future.
“Do not save what is left after spending, but spend what is left after saving.” A secure retirement is the result of consistent and well-planned financial decisions.
Why Should Investors Care?
- Tax Planning & Filing – The financial year-end is the last chance to optimize taxes by investing in tax-saving instruments.
- Purify your non sharia income – The financial year-end is good time to purify your last year non sharia income from your capital gain.
- Purify your Dividend – Investors should check all dividend income and purify it.
- Portfolio Rebalancing – Investors should review asset allocation, adjust risk exposure, and rebalance portfolios based on financial goals.
As an NRI, ensure compliance with FEMA regulations while investing in Indian markets, plan for taxation on capital gains from property sales in India, and diversify investments across geographies to balance currency risks.
The financial year-end is not just a statutory deadline but a golden opportunity to secure your financial goals. As Warren Buffett rightly said, “Someone’s sitting in the shade today because someone planted a tree a long time ago.” So, make wise financial decisions today to enjoy a prosperous tomorrow.
