Tax Year 2026-27 Meaning: Which FY and AY Is It?
Tax year 2026-27 means income earned from 1 April 2026 to 31 March 2027. In old terms that is FY 2026-27 and AY 2027-28, with the return filed in 2027.
Updated 27 September 2026 · 3 minute read
Tax year 2026-27 is the twelve months from 1 April 2026 to 31 March 2027. In the old vocabulary it is FY 2026-27, and the return for it would have been called AY 2027-28. You file that return in 2027, and for most salaried people it is due by 31 July 2027.
The term comes from the Income-tax Act, 2025, which took effect on 1 April 2026 and dropped the two-year naming that confused everyone.
Why there used to be two years
Under the Income-tax Act, 1961, every income had a previous year, the financial year in which you earned it, and an assessment year, the following year in which it was assessed and your return was filed. Salary earned from April 2025 to March 2026 was "FY 2025-26" and its return was "AY 2026-27". The two labels were always one year apart, and people mixed them up constantly, especially when choosing an ITR form or reading a tax notice.
One year now
The new Act uses a single tax year, from 1 April to 31 March. The year you earn the income and the year you are taxed on it now share a name. There is no assessment year in the vocabulary any more.
| You earned the income | Old name | New name | Return filed in |
|---|---|---|---|
| April 2025 to March 2026 | FY 2025-26 (AY 2026-27) | Stays FY 2025-26, old Act | 2026 |
| April 2026 to March 2027 | Would have been FY 2026-27 (AY 2027-28) | Tax year 2026-27 | 2027 |
| April 2027 to March 2028 | Would have been FY 2027-28 (AY 2028-29) | Tax year 2027-28 | 2028 |
The transition year trips people up
Income earned up to 31 March 2026 is still governed by the old Act, so the return filed in 2026 is still called AY 2026-27 and still quotes the old section numbers. That is the last return with an assessment year.
Salary earned from 1 April 2026 falls under the new Act. So in September 2026, the "current year" for your payroll and TDS is tax year 2026-27, while any correction to last year's return is about FY 2025-26 under the 1961 Act.
What tax year 2026-27 means for your salary
Nothing changed in the arithmetic when the name changed:
- The new-regime slabs are the same as FY 2025-26: nil up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% in ₹4 lakh steps, and 30% above ₹24 lakh.
- The standard deduction is still ₹75,000 in the new regime.
- The rebate, now in section 156, still makes taxable income up to ₹12 lakh tax-free, so a salary of up to ₹12.75 lakh pays nothing.
The full tables are in income tax slabs for 2026-27, and the income tax calculator applies them to your salary. For the new section numbers, see what the Income-tax Act, 2025 changes.
Frequently asked questions
Tax year 2026-27 means which financial year?
It means the financial year from 1 April 2026 to 31 March 2027, the one that would have been called FY 2026-27 under the old Act.
Tax year 2026-27 means which assessment year?
Under the old naming it would have been AY 2027-28. The new Act has no assessment year, so you will see only "tax year 2026-27" on forms and notices for this income.
When do I file the return for tax year 2026-27?
In 2027. For people filing ITR-1 or ITR-2, which covers most salaried taxpayers, the due date is 31 July 2027.
Is tax year 2026-27 the same as AY 2026-27?
No, and this is the most common mix-up. AY 2026-27 is the old name for the return on income earned from April 2025 to March 2026. Tax year 2026-27 is the income earned a year later, from April 2026 to March 2027.