Quick Summary
Assessment Year follows the Financial Year for computing and paying taxes.
If Financial Year is 2025-26 (April 2025 - March 2026), Assessment Year is 2026-27. Income earned in FY is assessed and tax paid in AY. Returns are filed in the Assessment Year.
Key Points
- Follows Financial Year
- Tax assessment year
- Return filed in AY
- AY = FY + 1
- Example: FY 25-26 = AY 26-27