What Is Assessment Year (AY) 2025–26 in Income Tax?
What Is Assessment Year (AY) 2025–26 in Income Tax?
Complete Guide to Understand AY vs FY for Indian Taxpayers
One of the most common questions during tax filing season is:
“What is AY 2025–26, and how is it different from the financial year?”
If you're confused between Assessment Year (AY) and Financial Year (FY), you're not alone. In this article, we explain what AY 2025–26 means, how it impacts your ITR filing, and what you need to know for FY 2024–25.
📘 What Is Assessment Year (AY)?
The Assessment Year (AY) is the year in which you file your Income Tax Return (ITR) and the government assesses your income earned in the previous financial year.
In simple terms:
🧾 You earn income in the Financial Year (FY), and you file and assess it in the Assessment Year (AY).
📅 What Is AY 2025–26?
• AY 2025–26 refers to the period from 1st April 2025 to 31st March 2026
• It is the year in which you file the ITR for income earned during FY 2024–25 (i.e., from 1st April 2024 to 31st March 2025)
✅ So, if you’re filing your tax return between April 2025 and December 2025, you’ll be filing for AY 2025–26.
🧾 Example to Understand AY 2025–26
Let’s say:
• You earned salary, interest income, or business income from 1 April 2024 to 31 March 2025
• You file your ITR in July 2025
🔁 That income will be assessed in Assessment Year 2025–26, for Financial Year 2024–25
📌 Why Is AY Important for Filing ITR?
When you log in to the Income Tax Portal, you’ll be asked to select the Assessment Year.
If you earned income in:
• FY 2023–24 → AY 2024–25
• FY 2024–25 → AY 2025–26 ✅
• FY 2025–26 → AY 2026–27
Always choose the correct AY while filing—selecting the wrong year may result in:
• Rejection of your return
• Wrong TDS mapping
• Delayed refunds
📝 What Is the Due Date for Filing ITR in AY 2025–26?
| Type of Taxpayer | Due Date (Expected) |
| Individuals & salaried (non-audit cases) | 31st July 2025 |
| Businesses requiring an audit | 31st October 2025 |
| Belated return filing | 31st December 2025 |
🧮 Which ITR Form to Use in AY 2025–26?
| Income Source | Likely ITR Form |
| Salary/Pension + FD interest | ITR-1 (Sahaj) |
| Capital gains, multiple properties | ITR-2 |
| Business/Profession (Presumptive) | ITR-4 |
| Business requiring an audit | ITR-3 |
Final Words
AY 2025–26 is the year you report and file your tax return for income earned in FY 2024–25.
Understanding the difference between Assessment and Financial Year helps ensure your ITR is filed correctly and on time.
