Income Tax
FY (Financial Year)
The 12-month period from April 1 to March 31 during which income is earned and recorded.
Full Definition
Financial Year (FY) in India runs from 1 April to 31 March. All income earned during this period is reported in the ITR filed in the subsequent Assessment Year (AY). FY 2025-26 = April 1, 2025 to March 31, 2026. The corresponding AY is 2026-27. Tax rates, exemptions and deduction limits are determined by the Union Budget applicable to the relevant FY.
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.
AY (Assessment Year)
The year in which income earned in the previous financial year is assessed and taxed.
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.