What is the “Tax Year” under the Income-tax Act, 2025?
Short answer: The Tax Year is the financial year, from 1 April to 31 March, in which you earn your income. It replaces the old "previous year" and "assessment year". Income earned from 1 April 2026 to 31 March 2027 belongs to Tax Year 2026-27.
Under the Income-tax Act, 1961, the year you earned income (the previous year) and the year it was assessed (the assessment year) had different labels. Income from April 2025 to March 2026 was previous year 2025-26 and assessment year 2026-27.
The Income-tax Act, 2025, in force from 1 April 2026, uses one label for both. You earn income in Tax Year 2026-27, and you file your return for Tax Year 2026-27.
Returns for income earned up to 31 March 2026 are still filed under the 1961 Act with the assessment year label. Read more in our guide to what changed on 1 April 2026.
Official sources
- Income Tax Department, Income Tax Department
- Income Tax e-filing portal, Income Tax Department
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This page is general information to help you understand the topic. It is not tax, legal or financial advice for your situation. Rules can change; check the tax year shown above. See our disclaimer and editorial policy.