The financial year in which income is earned is calledAnswer area) Current YearAssessment YearFiscal YearPrevious Year

The correct answer to your question is Previous Year.

Explanation:

1. Current Year refers to the ongoing financial year, but it is not specifically related to the income earned.
2. Assessment Year is the year following the financial year in which income is assessed for taxation purposes.
3. Fiscal Year is a period used by governments for accounting purposes, which may align with the financial year but is not specifically used in the context of individual income tax.
4. Previous Year is the term used to refer to the financial year in which the income is earned before it is assessed in the following assessment year.

When discussing taxation, the term Previous Year specifically denotes the period during which the income was actually received or accrued, making it the correct choice.