InvestorQ : What is the assessment year (AY) with respect to my taxes?
Ashok Patkar made post

What is the assessment year (AY) with respect to my taxes?

Answer
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1 year ago


This is a very relevant question. Most people just give their income tax papers to their CAs or any individual who can help them with tax filing. However, very few of us know what the terms regarding income tax actually mean. Assessment Year is one such term.

Assessment Year is the year in which an individual files income tax returns (ITR) of the year prior to it (i.e. Financial Year). It is the year in which the income that one has earned in the financial year that is just ended is evaluated.

E.g. For Financial Year 2014-15, the Assessment Year will be 2015-16.