India may change Financial Year to Jan-Dec from Apr-Mar

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  1. Karan Batra

    Karan Batra Well-Known Member

    The government has set up a committee to examine whether the financial year should commence from April, as is the norm currently , or some other date.

    A shift would entail changes in our everyday life -beginning from the date of salary revision to filing tax returns and for the government, it would mean an alternation in the entire budget process. In case of a change, India's financial year could be aligned with several countries, most of whom follow a calendar year model. China, Brazil and Russia are in this group.

    India follows the British model where the fiscal year begins on April 1. Several other large economies do not follow the calendar year.

    While officials have spoken about the possibility of changing the fiscal year in private, the finance ministry on Wednesday set up a panel headed by former chief economic adviser Shankar Acharya to examine the feasibility of having a new financial year. “The committee will examine the merits and demerits of various dates for the commencement of the financial year including the existing date (April-March), taking into account the various relevant factors,“ the ministry said.

    In case a change is recommended, the panel has been tasked with working out the modalities for change, the appropriate time of moving to a new date, a transition period and changes in tax laws during the period.

    Source: Times of India (Refer attachment)

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