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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)
Vishnupriya.G
Vishnupriya.G 8 years 2 months ago

Hello Sir,
I think we can continue with the current Financial year, as it would be more appropriate in the Global Scenario by having uniform Financial Year as that of Developed nations, which would be easy to attract global investment and improve the level of ease of doing business.Moreover implementation will also be quiet difficult in a larger economy like ours.

Nitin G_3
Nitin G 8 years 2 months ago

I will be happy if financial year is changed to start from 1st Jan to Dec. 31.
It is very irritating and confusing to keep writing "Financial year ending in Mar xxxx".
I believe a HUGE PART OF THE POPULATION will find it a bit easier to file taxes and also in other things.
Also computer programming related to accounts/tax will become a lot easier.
Thanks.

Siany Health Pvt Ltd
Siany Health Pvt Ltd 8 years 2 months ago

Yes i think and feel the best practice to have is having finacial year from 1 january to 31st december everything else can be aligned and understood very easily there will be no confusion at all for anyone and practices automation of govt operations is very important to kill VIRUS called as CORRUPTION!

Lavanya Ajesh Kamat
Lavanya Ajesh Kamat 8 years 2 months ago

Having a concurrent financial system as with the ones around the world is beneficial in several ways. As our economy progresses and more multinationals and Other governments (Japan/China/USA etc) invest in various segments of the economy, it is better to have our FY synced with other governments around the world. As far as forecasting impact of Monsoon and other seasonal revenues are concerned - we have a 65 year history now - nothing that a good predictive methodology will not solve

csswamy11@gmail.com
chandrashekhar swamy 8 years 2 months ago

Dear Sir,
Jan to Dec will be feasible for our country and economy and for common man it will increase best practice in our country and realign will world economy it will great for our economy

Bishambhar Mishra
Bishambhar Mishra 8 years 2 months ago

Financial year of Jan - Dec would be better. Let it go with the calendar year. Even RBI should have the same instead of July - June system.

akt244@hotmail.com
Chandrashekhar Tiwari 8 years 2 months ago

MY VIEW IS DIFFERENT FROM YOU PEOPLE BECAUSE MY CONCERNED IS DIFFERENT I REQUEST TO GOVERMENT OF INDIA TO PLEASE INTERVENE IN THE ISSUE OF KARNATAKA AND TAMILNADU DISPUTE AND PLEASE STOP THE VIOLENCE BECAUSE IN ONE COUNTRY TWO FAMILY MEMBERS SHOULD BE UNITE NOT TO FIGHT

NRNPRASAD2010@GMAIL.COM
NARAYANA PRASAD N R 8 years 2 months ago

sir,
MY SUBMISSON IS YOU CAN DO BOTH,IE CHANGING THE FINANCIAL YEAR FROM 1ST JAN TO 31ST DEC AND CONDUCTING THE SIMULTANEOUS ELECTION TO ALL POST

vinodkumar1936@yahoo.in
Maj Gen Vinod Kumar Retd kumar 8 years 2 months ago

Simultaneous Elections
Though desirable, it is most difficult to achieve unless Peoples'Representation Act is amended drastically Besides,consider last Bihar State elections These had to be conducted in seven phasesover a period of almost a month Will the Govt ever have such large strengths of security forces to deploy in all the states simultaneous elections for such long drawn periods? Very doubtfulThen, what will happen if a state goby resigns or falls prematurely or president's is imposed?