AY 2026-27 or tax year 2026-27: what is the difference?
Draft: not yet reviewed by a CA.
AY 2026-27 covers income earned from April 2025 to March 2026, under the 1961 Act. Tax year 2026-27 covers income earned from April 2026 to March 2027, under the Income-tax Act, 2025. They are different years, so check which income your form or calculator is asking about before you start.
Why are there two labels?
The Income-tax Act, 1961 used two terms: the financial year you earn the income, and the assessment year after it, when you file. The Income-tax Act, 2025 replaces both with one term, the tax year.
Which one applies to you?
| Income earned | Old label | New label | Law |
|---|---|---|---|
| April 2025 to March 2026 | FY 2025-26, AY 2026-27 | Not used | Income-tax Act, 1961 |
| April 2026 to March 2027 | Not used | Tax year 2026-27 | Income-tax Act, 2025 |
What does this mean in practice?
If you are filing or revising a return for income earned up to March 2026, you are working on AY 2026-27. If you are planning tax for the year running now, you are working on tax year 2026-27.
Section numbers differ between the two Acts, so older articles may quote a section that has a new number now.
How do our calculators handle this?
Where it matters, our calculators let you choose the year. Rules can differ. For example, the list of cities that get the higher HRA limit is longer from tax year 2026-27.
Estimate for planning, not tax advice.