The assessment year (AY) in Income Tax Return (ITR) refers to the year in which the income earned in the previous financial year (FY) is assessed and taxed. The AY always follows the FY. For example, if the income is earned during the financial year from April 1, 2024, to March 31, 2025 (FY 2024-25), then the assessment year will be from April 1, 2025, to March 31, 2026 (AY 2025-26). Taxpayers must file their ITR in the assessment year for the income earned in the preceding financial year. Hence, the assessment year in the ITR should be the year immediately following the financial year of income earned.