Previous Year (P.Y.)

According to Income Tax law, income earned in the current year becomes taxable in the subsequent year. The term used for the year in which the income is earned is "previous year." In simpler terms, the ongoing financial year is colloquially referred to as the previous year. The financial year spans from 1st April to 31st March of the following year. For example, if someone earns salary income between 1st April 2017 and 31st March 2018, the corresponding previous year would be 2017-18.