Difference between Assessment Year and Financial Year

In income tax parlance, there is an important difference between an "assessment year" and "financial year". 

In India, the financial year usually starts on April 1 of a calendar year and ends on March 31 the following calendar year. For example, April 1 2008 to March 31 2009 is a financial year. The taxes for the financial year 2008-2009 has to be reported in the assessment year 2009-2010! Did you get that?

In other words, you should use the tax forms that say "Assessment year 2009-2010" to report on taxes for the financial year 2008-2009.  While this makes no logical sense, that is the way it is in India. If you were to file taxes that say "Assessment year 2008-2009", then you are reporting wrong.