What is a “Tax Year”? How it replaces FY and AY, with examples
Tax Year is the 1 April–31 March period in which you earn income. It replaces two old terms: “previous year” (financial year) and “assessment year”. So income earned from 1 April 2026 to 31 March 2027 is Tax Year 2026-27, and you file its return in 2027. Under the old system, the same year was called FY 2026-27 / AY 2027-28.
Key facts Last verified: 25 Sep 2026
| Item | Details | Source |
|---|---|---|
| Definition | The financial year (1 Apr–31 Mar) in which income is earned | Income-tax Act, 2025 |
| Replaces | “Previous year” and “assessment year” | Income Tax Dept |
| First Tax Year | 2026-27 (1 Apr 2026 – 31 Mar 2027) | Income-tax Act, 2025 |
Old terms vs Tax Year
| Income earned | Old name | New name | Return filed in |
|---|---|---|---|
| 1 Apr 2025 – 31 Mar 2026 | FY 2025-26 / AY 2026-27 | (old Act applies) | 2026 |
| 1 Apr 2026 – 31 Mar 2027 | FY 2026-27 / AY 2027-28 | Tax Year 2026-27 | 2027 |
| 1 Apr 2027 – 31 Mar 2028 | FY 2027-28 / AY 2028-29 | Tax Year 2027-28 | 2028 |
Why the change?
Two different “years” confused many taxpayers — people often picked the wrong year when paying tax or filing returns. One term makes forms, challans and notices easier to understand.
Paying tax online? Portals may show both terms during the transition. Tax Year 2026-27 = the old AY 2027-28. When paying the PAN–Aadhaar ₹1,000 fee, pick the year the portal suggests.
Frequently asked questions
What is Tax Year 2026-27?
The period from 1 April 2026 to 31 March 2027 in which income is earned, under the Income-tax Act, 2025.
Is Tax Year the same as financial year?
Yes, it covers the same 1 April–31 March period. It also replaces the separate “assessment year”.
Which assessment year is Tax Year 2026-27 equal to?
The old AY 2027-28.
Official links
Use only these government websites. HumainOne is not connected to any of them.
- Income Tax Department — New ActTax Year and other changes
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