Insta
Income Tax Department Considering To Start Financial Year From 1 January Instead Of 1 April
Swarajya Staff
Apr 26, 2019, 01:59 PM | Updated 01:59 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
The Income-tax (IT) department is expected to propose making financial year co-terminus with the calendar year to help simplify tax-filing across the country, reports Business Standard (BS).
As part of its proposals to the Department of Revenue on the interim budget to be presented in July, the IT Dept is likely to support a resolution advancing the financial year by three months.
Presently the fiscal year runs from 1 April to 31 March and the calendar year runs from 1 January to 31 December.
“If the Bharatiya Janata Party (BJP) is reelected on 23 May, it may change financial year (April-March) to calendar year (January-December). However, it may face operational challenges and should be given sufficient time before changing the system,” said a source to BS.
“If it gets introduced, this would end the 150-year British practice. Similarly, tax department is also pitching for making financial and assessment year same under the I-T Act,” he added.
Approval From The Highest Levels
In 2017 Prime Minister Narendra Modi had vouched for the idea of bringing the financial year in line with the calendar one. This proposal also found NITI Aayog’s endorsement.
The NDA government had even set up a committee to examine the viability of the proposal.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.