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Tax Year
Under the Income Tax Act, 2025, the “tax year” is the financial year, April to March, in which income is earned. It replaces the old pair of terms, previous year and assessment year, which described the same income from two angles.
Why It Matters
It is a small vocabulary change that removes one of the most confusing parts of Indian tax.
In India
Income earned between April 2026 and March 2027 belongs to tax year 2026-27, and the return is filed for that tax year.
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