When planning income tax deductions for salaried employees, these are some of the terms you must understand. FY stands for fiscal year, and it is the year in which you earn money. AY is the year after the financial year in which you must review and pay taxes on the previous year's earnings.
For example, if your fiscal year runs from April 1, 2019 to March 31, 2020, it is referred to as FY 2019-20. The assessment year for money earned during this time would commence after the financial year ended, which would be from April 1, 2020, to March 31, 2021. As a result, the assessment year will be 2020-21.