Glossary
Previous Year
Previous Year
Previous Year (PY) The Previous Year is the financial year immediately preceding the Assessment Year. It is the 12-month period during which the income is actually earned by the taxpayer.
Where it appears in practice
It determines when the income was accrued or received, dictating which tax rules and slabs apply. Tax planning investments must be completed before the Previous Year ends on March 31 [VERIFY].
A worked example
For the Assessment Year 2024-25, the Previous Year is 2023-24 (from April 1, 2023, to March 31, 2024). This is the period when the individual worked and earned a salary.
Related terms
- Assessment Year
- Financial Year
- Advance Tax
Let the practice handle it
This term sits inside real compliance work — returns, filings, and deadlines. That work is one of the services the practice runs end to end.
Income Tax Returns