Tax Guide
AMENDEDKey mapping
Under the IT Act 2025, 'Tax Year' is used instead of the old 'Previous Year' / 'Assessment Year' duality. Tax Year 2026-27 = income earned 1 April 2026 to 31 March 2027.
The IT Act 1961 had a confusing dual-year system: income earned in the Previous Year was taxed in the Assessment Year. The IT Act 2025 eliminates this by using 'Tax Year' — income earned in Tax Year 2026-27 is assessed and taxed in the same year. Returns are filed and tax is paid for the Tax Year in which the income was earned. This aligns India with international practice. For all years before 1 April 2026, the old AY/PY terminology still applies under transitional rules.
Use this in practice
Related sections
All section references are sourced from the Income Tax Act 2025 (official gazette, incometaxindia.gov.in) and cross-referenced against CBDT's comparative statement. Always verify on the official portal before filing. This page is for reference only and does not constitute legal or tax advice.