Financial year may soon begin from January: Jaitley
Finance Minister Arun Jaitley on Friday said that the financial year may soon begin from January in sync with the calendar year. "The matter of changing financial year is under consideration of the government," he told the Lok Sabha. In May, Madhya Pradesh became India's first state to shift its financial year format to January-December from the present April-March cycle.
Financial year in India could soon be the same as calendar year as the Narendra Modi government is considering changing the fiscal year to January-December to coincide with the calendar year."The matter of changing financial year is under consideration of the government," Finance Minister Arun Jaitley on Friday said in a written reply in the Lok Sabha.He was asked whether the government proposes to synchronise the financial year with the calendar year from January.The matter has been examined recently by a committee constituted by the government under the chairmanship of former Chief Economic Adviser Shankar Acharya. The report of the committee has been received, the Finance Minister said.At a Niti Aayog meeting earlier in the year, Prime Minister Narendra Modi has made a pitch for a January-December financial calender for the country.Addressing the states during NITI Aayog governing council meeting on April 23, Modi had said, "In a country where agricultural income is exceedingly important, budgets should be prepared immediately after the receipt of agricultural incomes for the year".He had asked state governments to consider shifting financial year to January-December, in line with major global economies.Later on in May, Madhya Pradesh became India's first state to announce shifting of its financial year format to January-December from the present April-March cycle.Breaking away from tradition, the Narendra Modi government had advanced the Budget presentation to February 1 this year.Jaitley refused to comment on whether the government was proposing to present the Union Budget in November-December this year to enable the change in financial year.A change in the financial year will require amendments to various statues including tax laws during the transitional period. Also read:Narendra Modi pushes for January-December financial year: All you need to know about what PM said at Niti Aayog meetMP to shift financial year format to January-December