BASICS
January 1st marked the beginning of a brand new year. For the government, many businesses, investors and taxpayers in India, it is the year beginning from April I that matters.
YEAR END ACTIVITIES LIKE
Closing of books of account, Advance Tax Payment, Computation of Tax, Service Tax Dues payment, Investments to Save Tax as per the Tax Las Provision, TDS Calculation and payment, Counting of Physical Inventory and verifying with books, Confirmation of Customer and Vendor Outstanding balance., Computation of Capital Gain and losses, Repayment of Housing loan, Tax Planning, Manage Professional; Income & Expenses, Deposit in FD, PPF, LIC as per the Income Tax Provision to save tax, Filing of Belated Income Tax Return, Account for Unabsored Business Losses, Closing of Financial Year, Paying Taxes, Settling of all books
UNION BUDGET OF INDIA
The Government presents it on the first day of February so that it could be materialized before the commencement of new financial year in April. The budget, which id presented by means of the Finance bill and the Appropriation bill has to be passes by both the Houses before it can come into effect from April I, the start of India's financial year.
ACCOUNTING OR FINANCIAL YEAR
India - 1 April - 31 March
Australia - 1 July - 30 June
China - 1 January to 31 December
Japan - 1 April - 31 March
Pakistan - 1 July - 30 June
United State - 1 October - 30 September
United Kingdom - 6 April - 5 March
(In the UK the financial year began on April 1, 20148, and runs until March 31, 2019, for the purpose of government working out their finances. For personal tax purposes, the fiscal year starts on April 6 and ends on April 5 of the next calendar year.)
BRIEF HISTORY ACCOUNTING YEAR IN INDIA
Most companies and businesses in India follow the April to March accounting cycle that syncs with fiscal year of the government. But some companies follow a different cycle. For instance, Nestle India follows a January to December accounting year while Gillette India's financial year ends on June 30.
Many corporate realigned to April - March after new Companies Act called for a uniform year.
THE R.B.I. TOO FOLLOWS ITS OWN ACCOUNTING YEAR
The RBI too follows its own accounting year, as it likes to present an aggregate picture after all banks come out with their numbers, its accounting year begin with a three - month lag and follows a July - June cycle.
PROPOSAL TO CHANGE INDIA'S FINANCIAL YEAR TO JAN - DECEMBER
The Government, in May last year (2017), was reported to have initiated the spadework for shifting the financial year to January, from April, to align it with the agriculture production cycle.
Prime Minister Narendra Modi had backed the idea of the January - December financial year while addressing chief ministers at the Governing Council of NITI Aayog in April 2017.
The idea was dropped after some states objected to it
GOI had appointed a committee head by former Chief Economic Adviser Shankar Acharya to analyse the Niti Aayog's recommendation of shifting the financial year from April - March to Jan - Dec.
