What is a "Tax Year"? The New Concept Replacing Previous & Assessment Year

Updated 2026-08-02 · By KyaTax · 5 min read

For decades, Indian income tax used two overlapping terms — the Previous Year (when you earned income) and the Assessment Year (the following year, when it was taxed). This routinely confused taxpayers. From FY 2026-27, the Income-tax Act, 2025 replaces both with one term: the Tax Year.

Old vs new terminology

Concept	Old term	New term
The year you earn income (1 Apr – 31 Mar)	Previous Year 2026-27	Tax Year 2026-27
The year it is assessed/filed	Assessment Year 2027-28	(no separate term)

So income earned between 1 April 2026 and 31 March 2027 is simply "Tax Year 2026-27". Returns, notices and forms are expected to move to this single reference over time.

Why it matters: fewer mismatched year references mean fewer errors when quoting a year in a return, a notice reply, or a TDS statement.

Important: This article is general information based on laws, notifications and public sources current as of August 2026. It is not legal, tax, accounting or professional advice or opinion, and must not be relied on for any decision. Tax and legal rules change frequently and their application depends on your specific facts. Please verify the latest position and connect with a KyaTax expert or your professional advisor before acting.

Rules change often and how they apply depends on your exact numbers and facts. Don't guess on the Tax Year concept — get a qualified professional to review your case.

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Frequently asked questions

Is Assessment Year gone completely?

The single "Tax Year" replaces the previous-year/assessment-year pair from FY 2026-27. Older years still use the earlier terminology. Check the correct reference for the year you are filing.

Which tax year is FY 2026-27?

Income earned from 1 April 2026 to 31 March 2027 is Tax Year 2026-27.

Does this change my due dates?

The concept is terminology; due dates are set separately. Confirm the current deadline for your form with an expert.