What is an Assessment Year?
The assessment year is the year in which your income is assessed for tax purposes. It starts on April 1 and ends on March 31 of the following year. In other words, it is the year after the financial year in which you earned your income.
For example, if your financial year is 2022-23, your assessment year will be 2023-24. This means that your income for the financial year 2022-23 will be assessed in the assessment year 2023-24.
The assessment year is important because it is the year in which you will file your income tax return and pay your taxes. It is also the year in which the Income Tax Department will assess your income and determine your tax liability.