Income Tax
AY (Assessment Year) — Meaning
The year in which income earned in the previous financial year is assessed and taxed.
What is AY (Assessment Year)?
Assessment Year (AY) is the 12-month period (April 1 to March 31) immediately following the Financial Year (FY) in which income was earned. For example, income earned in FY 2025-26 (April 2025 to March 2026) is assessed in AY 2026-27. ITRs are filed in the Assessment Year. When referencing an ITR, always specify both the FY (when income was earned) and AY (when the return is filed). Tax notices and assessments also refer to AY.
Related terms
More Income Tax terms
ITR (Income Tax Return)
Annual declaration filed with India's Income Tax Department reporting income, deductions and tax paid.
FY (Financial Year)
The 12-month period from April 1 to March 31 during which income is earned and recorded.
PAN (Permanent Account Number)
Unique 10-character alphanumeric identifier issued by the Income Tax Department to every taxpayer.
TAN (Tax Deduction Account Number)
10-character number required by entities that deduct or collect tax at source (TDS/TCS).
TDS (Tax Deducted at Source)
Tax deducted from payments by the payer and deposited with the government on behalf of the payee.
