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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.

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Showing 816 Submission(s)
tulasi.dharan@gmail.com
MOTHKURI TULASIDHARAN 8 years 2 months ago

Yes idea is good but we have to compare its pros and cons with respect to international scenario. As we begin the new year with fresh ideas in the january month every year we can now start our financial accounting year also with fresh energy and thoughts, whereas now new year is just half fresh with accounting month of march ahead.

paruljoshi1661@gmail.com
Parul Joshi 8 years 2 months ago

Respected Sir India is now an emerging economical power Any hasty decision may create future economic problems which we cannot afford Actually we should have crop based system: Kharif & Ravi. Can we develop a globally acceptable yet our own system? My wish is to see the cost of 1 Re=1$ & that's going to be a still long way but we can dream isn't it. May the Almighty guide us on the right path to achieve our goal of a Financially Independent India. Amen All the Best Sirs and Thank you Regards

LALIT BAPNA
LALIT BAPNA 8 years 2 months ago

भारत में केन्द्रिय , राज्ये सरकार, स्थाकनीय निगम परिषद पालिका पंचायत समिति आदि विभागो मे कार्यो के लिये निविदाये निकलती है इनमें चाहे प्रशासक या जन प्रतिनिधी परन्तुग सभी विभागो में आफिस खर्चा लगभग 18 से 22 प्रतिशतलगता है इस कारण कार्य की लागत एवं गुणवता में फर्क पडता है केवल जन प्रतिनिधी के इमानदार हाने से इनको कोई फर्क नही पडता है इस कारण् 100 रूपये के काम में लगभग 40 रूपये का कार्य हो पाता है
सरकार कोई ऐसी व्यकवस्थाा करे जिससे ठेकेदार भी ईमानदारी से कार्य कर अफसरो की भी अवैध वसुली बंद हो

surajmayekar
suraj mayekar 8 years 2 months ago

sir
i am working in news paper office since 5 year. we r make govt foucus on other problems. but what about us we are not getting any govt specialty even esi pf form our office. so please make rule for news paper if you get govt add first follow labour rule and labour specialty
please note this sir we r here for all. but no one for us
thank you sirji.............

Bibhuprasad Pattajoshi
Bibhuprasad Pattajoshi 8 years 2 months ago

A great idea indeed, both desirable and feasible too. Desirable because we need to be aligned with the major countries we do business with, who invest in, buy our products... Why to have multiple financial and accounting books to be maintained, why to do more paperwork and spend more for the same work. At times I wonder why there are so many states and UTs, instead we can have only one state called India. Why so much of hierarchy ? Absolutely feasible if we want to implement it. Else not.

LALIT BAPNA
LALIT BAPNA 8 years 2 months ago

भारत में केन्द्रिय , राज्या सरकार, निगम परिषद पालिका पंचायत समिति आदि विभागो मे कार्यो के लिये निविदाये निकलती है इनमें चाहे प्रशासक या जन प्रतिनिधी परन्तुम सभी विभागो में आफिस खर्चा लगभग 18 से 22 प्रतिशत लगता है इस कारण कार्य की लागत एवं गुणवता में फर्क पडता है
केवल जन प्रतिनिधी के इमानदार हाने से इनको कोई फर्क नही पडता है इस कारण् 100 रूपये के काम में लगभग 55 रूपये का कार्य हो पाता है
सरकार कोई ऐसी व्यंवस्था करे जिससे ठेकेदार ईमानदारी से कार्य करs अफसरो की भी अवैध वसुली बंद हो

LALIT BAPNA
LALIT BAPNA 8 years 2 months ago

भारत में केन्द्रिय , राज्य सरकार, स्था नीय निगम परिषद पालिका पंचायत समिति आदि विभागो मे कार्यो के लिये समय समय पर विभिन्न् ‍ कार्यो के लिये निविदाये निकलती है इनमें चाहे प्रशासक हो या जन प्रतिनिधी परन्तुव सभी विभागो में आफिस खर्चा लगभग 18 से 22 प्रतिशतलगता है इस कारण कार्य की लागत एवं गुणवता में फर्क पडता है केवल जन प्रतिनिधी के इमानदार हाने से कोई फर्क नही पडता है इस कारण् 100 रूपये के काम में लगभग 55 से 60 रूपये का कार्य हो पाता है
सरकार कोई ऐसी व्यकवस्था करे जिससे ठेकेदार भी ईमानदारी

Dattatray Z
Dattatray Z 8 years 2 months ago

I support the idea of changing Financial Year to 01 Jan to 31 Dec.
It is sensible idea, at the very least, it will remove the confusion between Calendar Year and Financial Year. Why these two have to be different I do not know.

Kathir Uzhavan
Kathir Uzhavan 8 years 2 months ago

Very good decision for change of financial year Jan to Dec. at the same time strictly removed two type of year mentioning ex: Financial Year & Assessment year. Very confusion.

Kathir Uzhavan
Kathir Uzhavan 8 years 2 months ago

Very good decision for change of financial year Jan to Dec. at the same time strictly removed two type of year mentioning ex: Financial Year & Assessment year. Very confusion.(sales tax say financial year & assessment year is same. but income tax say it is so different)