GOVERNMENT OF INDIA
English language

Home | MyGov

Accessibility
Accessibility Tools
Color Adjustment
Text Size
Navigation Adjustment
Screen Reader iconScreen Reader
Menus
Sticky Menu

Desirability and Feasibility of Changing the Financial Year

Desirability and Feasibility of Changing the Financial Year
Start Date :
Aug 24, 2016
Last Date :
Oct 01, 2016
00:00 AM IST (GMT +5.30 Hrs)
Submission Closed

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.

Reset
Showing 816 Submission(s)
Brig K S Grewal
Brig K S Grewal 9 years 7 months ago
We should have Calender/FY/Academic years identical Jan-Dec. Most of India is fit for tourism during winters. Short holidays during summers in staggered manner can be planned during summer for visit to hill stns,which are few, as it is costly for large populace.With elec available in most of the schools can funct during summer months. Foreign tourists mostly visit in winters,can generate employment during college breaks.Schools in hills as it is close down in winters.W/o prejudice to fin reasons
Dislike (0)
Reply
Report Spam
vbelwal
vbelwal 9 years 7 months ago
It makes perfect sense to change the accounting year, financial year, budget year, assesment year (tax) from Jan 1 to Dec 31. Never understood why we changed it in the first place. Govt shd also make changes to their economic calendar similarly. This 2 year system is very confusing and quite illogical. Make it easy for the citizen not for the babus.
Dislike (0)
Reply
Report Spam
Mohit Garg
Mohit Garg 9 years 7 months ago
Changing the Financial Year (FY) to Calender Year (CY) will make India in sync with Other Major Nations. (I pray pardon in advance, my knowledge is limited to my experience but keep an open mind) But thinking from the scope of Economical Accounting a years measure should be measured in such a way the Economical labour and it's Economical result are compared in a single Financial Year. For our country it is from April to March (Due to our dependence on agricultural for most of our industries).
Dislike (0)
Reply
Report Spam
B Purniah
B Purniah 9 years 7 months ago
I thought the main issue was the time lag between the passing of the budget and the flow of funds to the various Ministries/Departments. This lag can be reduced by advancing the date of the budget presentation.
Dislike (0)
Reply
Report Spam
Hasmukh Sangani
Hasmukh Sangani 9 years 7 months ago
Good financial year should be from January to December. It will also align with other international community. This will help foreigners to do business here smoothly.
Dislike (0)
Reply
Report Spam
Swami Lalitananda
Swami Lalitananda 9 years 7 months ago
This change would be wonderful, especially for NRIs who file tax returns abroad and also for foreigners working in India. I have to get an extension on my US tax return every year, because it is due April 15th and I must include my Indian income tax return which doesn't get processed until August at the earliest, and the financial years don't coincide. I hope India changes its financial year to Jan 1st-Dec 31st.
Dislike (0)
Reply
Report Spam
Virendra Swami
Virendra Swami 9 years 7 months ago
This change should be done as early as possible. Thanks Hon. Modi sir to take initiative for this change to bring in reality.
Dislike (0)
Reply
Report Spam
Prashant Kumar Dubey
Prashant Kumar Dubey 9 years 7 months ago
This will be a kind of injustice to the Indian culture as our calendar vikram samvat starts from month of April and making the financial year from 1st January will make our future generations deprive of our culture,custom and tradition .So it embarks in it a sense of pride about our culture,custom and tradition to have financial year from 1 April to 31 March.We Should have a different calendar.
Dislike (1)
Reply
Report Spam
Sticky Menu