Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Assessment year is the 12-month period following the financial year in which income is evaluated and tax return is filed.
Assessment year is the year you file tax for last year's income — FY earnings assessed in the next AY.
Income of FY2024-25 assessed in AY2025-26. ITR due typically 31 July for non-audit cases. AY notation used in forms: "Previous Year" is FY, "Assessment Year" is FY+1. Carry-forward losses tagged to AY.
Earn salary FY2024-25 (Apr 2024–Mar 2025). File ITR in AY2025-26 by July 2025 declaring that income and claiming 80C proofs.
Income must fully accrue in FY before assessment. AY allows filing after FY ends when total income known.
Form 16 shows salary TDS for FY but references assessment year for which return will be filed.
Revised ITR filed within same assessment year as original return for that financial year's income.