The Financial Year (FY) is the 12-month period from 1 April to 31 March in which you earn income. The Assessment Year (AY) is the next year — AY = FY + 1 — in which that income is assessed and the return is filed. Income earned in FY 2025-26 (1 Apr 2025 – 31 Mar 2026) is filed in AY 2026-27. So when you file your ITR now, select AY 2026-27. The due date for individuals without audit is 31 July 2026.
FY vs AY Table — Which Year Is Which
The last few years mapped: the year income is earned (FY), the year it is filed and assessed (AY) and the ITR due date for individuals not liable to audit. Match your income year to the correct AY before you file.
| Financial Year (earned) | Assessment Year (filed) | ITR Due (non-audit) | Status |
|---|---|---|---|
| FY 2025-26 | AY 2026-27 | 31 Jul 2026 | Current |
| FY 2024-25 | AY 2025-26 | 31 Jul 2025 | Passed |
| FY 2023-24 | AY 2024-25 | 31 Jul 2024 | Passed |
| FY 2022-23 | AY 2023-24 | 31 Jul 2023 | Passed |
| FY 2021-22 | AY 2022-23 | 31 Jul 2022 | Passed |
Due dates are for individuals/HUFs not requiring audit; audit cases and companies have later dates. Belated/revised returns for FY 2024-25 (AY 2025-26) may still be filed within the statutory window with a late fee.
You earn in the Financial Year and are assessed in the Assessment Year. Salary slips, bank interest and TDS all speak in FY; the ITR portal, Challan 280 and income-tax notices all speak in AY. When in doubt, add 1 to the year income was earned to get the AY.
When to Use FY and When to Use AY
Selecting the wrong Assessment Year on the portal is one of the most common filing errors. This table shows which term each document or task uses.
| Situation | Use | Example |
|---|---|---|
| Filing ITR on the e-filing portal | AY | FY 2025-26 income → select AY 2026-27 |
| Advance-tax instalments | FY | Paid during FY 2025-26 (Jun/Sep/Dec/Mar) |
| Challan 280 (self-assessment tax) | AY | Tax for FY 2025-26 → pay under AY 2026-27 |
| Form 26AS / AIS / TDS certificate | AY | TDS in FY 2025-26 → shown under AY 2026-27 |
| Income-tax notice | AY | Notice for AY 2024-25 = FY 2023-24 income |
| Salary slip / bank statement | FY | "FY 2025-26 salary" = Apr 2025 – Mar 2026 |
Rule of thumb: money movements and pay records use FY; anything the Income-Tax Department issues or assesses uses AY.
If you earned income in FY 2025-26 and accidentally file under AY 2025-26, the return is for the wrong year and will mismatch your Form 26AS/AIS. Always select AY 2026-27 for FY 2025-26 income. If a wrong AY was already filed, file a revised return or raise a grievance on the e-filing portal.
Not sure which AY or which ITR form applies to you?
Get ITR Filing Help →Key Dates Across the FY and AY
Income is earned across the Financial Year, but most compliance — computing tax, paying self-assessment tax and filing the ITR — happens in the Assessment Year that follows.
- Advance tax (FY 2025-26): 15 Jun, 15 Sep, 15 Dec and 15 Mar — payable in the FY itself if total tax liability is Rs 10,000 or more. See advance-tax due dates.
- ITR due date (AY 2026-27): 31 July 2026 for individuals/HUFs not requiring audit; 31 October 2026 where a tax audit applies.
- Belated / revised return: generally allowed until 31 December of the Assessment Year, with a late fee under Section 234F.
Want the exact deadline for your case, audit or non-audit?
Check the ITR due date →What Is "Previous Year" in Income Tax?
"Previous Year" (PY) is the older statutory term for what everyone now calls the Financial Year — the year immediately preceding the Assessment Year in which income is earned. So Previous Year 2025-26 = Financial Year 2025-26, assessed in AY 2026-27.
Under the Income-tax Act, 2025 (in force from AY 2026-27) the drafting is simplified around the "financial year" and "tax year" terminology, but the earn-then-assess logic and the FY-to-AY mapping are unchanged. You may still see "Previous Year" in older forms, certificates and case law.
Financial Year, Previous Year and (for the first year of a new business) the part-year of setting up all refer to the same thing — the period in which income arises. Only the Assessment Year is different: it is always the year after the income is earned.
Want a CA to compute your income and file for the right AY?
File My ITR →FY vs AY — Frequently Asked Questions
Related TaxClue services
File Your ITR Under the Right Assessment Year
Confused between FY 2025-26 and AY 2026-27, or which ITR form to use? Our CA-led team computes your income, picks the right regime and files your return under the correct Assessment Year — 100% online, across India.