Income Tax Act 2025 | Day 2 – Tax Year Explained If you still think PY, AY, and FY made sense, you’re lying to yourself. One income, two years, three terms — that wasn’t law, it was confusion. Income Tax Act 2025 fixes this at the root. ✔️ PY & AY abolished ✔️ One clear concept: TAX YEAR ✔️ Income earned, assessed & taxed in the same year ✔️ Global terminology, cleaner compliance 📌 Tax Year = 12 months (normally 1 April to 31 March) 📌 Can be less than 12 months for new businesses or new income
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