Learning article
PAN, Aadhaar, FY vs AY — Explained Simply
The beginner glossary article that clears up four terms almost everyone sees before filing taxes in India.
Quick takeaways
PAN identifies you for tax purposes.
FY is the year you earn income.
AY is the year that income is assessed and filed.
Overview
PAN and Aadhaar
PAN is your main tax identity. Aadhaar is a broader identity document, but both often appear together in tax‑related processes.
You should understand which number is being asked for and why, instead of treating them as interchangeable.
Key concepts
FY vs AY — what’s the difference?
Financial Year (FY) — the period you earn the income in (e.g., 1 April 2024 to 31 March 2025).
Assessment Year (AY) — the year in which that income is reported and assessed (e.g., for FY 2024‑25, AY is 2025‑26).
Common mistakes
Common mix‑ups
Writing the wrong FY/AY on forms because you mixed them up.
Using Aadhaar when only PAN is required (or vice versa) without checking.
Key takeaways
Quick memory trick
Earn in FY.
Report in AY.
Keep both PAN and Aadhaar handy but know which one is being asked for.
FAQs
Common questions
Keep reading
Related articles
What is Income Tax?
A simple introduction to why income tax exists, who pays it, and how it affects everyday earning in India.
Explore articleWho Should File ITR?
A practical explanation of who should consider filing an income tax return and why filing can matter even beyond tax due.
Explore articleHow to File ITR‑1 (Sahaj) Online
A beginner‑focused walkthrough of when ITR‑1 is commonly used and how to approach filing without panic.
Explore article