Desirability and Feasibility of Changing the Financial Year

Desirability and Feasibility of Changing the Financial Year
Last Date Oct 01,2016 00:00 AM IST (GMT +5.30 Hrs)
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The Government of India has appointed a Committee chaired by Dr. Shankar Acharya, former chief economic adviser, to examine the desirability and feasibility of having a ‘new ...

The Government of India has appointed a Committee chaired by Dr. Shankar Acharya, former chief economic adviser, to examine the desirability and feasibility of having a ‘new financial year’. Other distinguished members of the Committee are Shri K M Chandrasekhar, former Cabinet Secretary, Shri PV Rajaraman, former Principal Finance Secretary, Tamil Nadu and Dr. Rajiv Kumar, Senior Fellow Centre for Policy Research.

Presently, the financial year followed by governments in India runs from 1st April to the following 31st March.

This issue was last examined by the L K Jha Committee in 1985, whose recommendation to move to a financial year of January 1- December 31 (for Central and State Governments) was then not accepted by the then Government.

There are many arguments for and against the change in financial year which revolve around issues of budget and cash management by government, seasonality of government revenues and expenditure, impact of Monsoon on budget forecasting, working season, timelines involved in the legislative cycle of passage of Budget by the Parliament, international comparability of fiscal statistics, aligning government’s financial year with year for tax assessment and corporate accounting purposes. Some arguments are less on the intrinsic merit or demerit of the change but rather on the timing of the change when the change coincides with other developments impacting businesses.

This Discussion Forum seeks to invite inputs from everyone interested in this issue.

We welcome your comments, suggestions, information and documents on the Committee’s Terms of Reference and issues related to it. Please provide these latest by 30th September, 2016.

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817 सबमिशन दिखा रहा है
1990
Mahavir Kapshe 3 साल 1 महीना पहले

It is very much needed to be January to December. Most of the countries have it. And the subsidiaries of such companies in our country require to prepare financial statements twice in a year. One to comply with the requirements of the country of the parent company and other to comply with our country. It is a waste. It would also facilitate tax officers to reconcile easily the transactions globally.

100
Ganesh Bari 3 साल 1 महीना पहले

Dear chairman and Committee members, we are searching and discussing for solution that we already have, as darkness under lamp. Solution is so simple and is gift to world. After going through to all details, submission and study I recommend only one year(may be financial or other) National solar calendar first month and start and last month as end. This recommendation is made so carefully. For its implementation we need vision and dare to do it(as looking towards developed country)

700
Balraj Sagar 3 साल 1 महीना पहले

There is no justification in continuing the legacy of British era. The financial year may better synchronize with the calendar year from January to December. The most important is to release funds in the beginning of the year to be spent gradually and in phased manner as the implementation of various schemes and works progress. There should be continuous monitoring too.

100
Yogendra Dubey 3 साल 1 महीना पहले

हमारे देश के मनीषियों ने आत्मबल से ग्रहो की गति को पहचाना जो वैज्ञानिक तौर पर भी सटीक व सत्य साबित है। इसके अनुसार वर्ष मेष संक्रांति से प्रारम्भ होकर मेष संक् के प्रारम्भ समय पर ही (365 दिन 6 घंटे व कुछ मिनिट) पर समाप्त होता है । यह 14 या 15 अप्रेल का दिन होता हैं तब तक कृषि की दोनों फसलों के उत्पादन का वास्तविक ज्ञान हो जाता है। अर्थात एक कृषि प्रधान देश में मेष संक्रांति (14/15 अप्रेल) से अच्छा और उचित दिन वित्तीय वर्ष प्रारम्भ करने के लिए हो ही नहीं सकता।गोवेर्धन लाल दुबे081073742

300
Dilip Kumar Bhattacharjee 3 साल 1 महीना पहले

I wholeheartedly support the idea of financial year starting from January.The idea must not be abandoned on the plea of complications that may arise in the process of change over. There is no dearth of experts in our country to solve that.I intend also to request you to do away with 'assessment year' & 'previous year' in respect of tax domain. Instead, there will be one reference year i.e.'financial year' for all the purposes of tax administration. Thereby a lot of complications may be avoided