Assessment Year (AY)

Assessment Year (AY) is the year in which the income earned in the previous financial year is assessed and taxed. In simple words, if you earn income during one financial year, the tax return for that income is usually filed in the following year, which is called the Assessment Year.

Example:
Income earned from 1 April 2024 to 31 March 2025 belongs to the Financial Year 2024-25, and its tax assessment year will be Assessment Year 2025-26.