Change in Financial Year

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ab16 (Querist)
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14 February 2008 Can an indian private company change its financial year from april-Mar to Jan-Dec. if yes, what is the procedure to do so?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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14 February 2008 The private company can change its financial year by passing a resolution in the meeting of the Board of directors of the company, before the closre of the financial year. The company should have passed a resolution in Dec 2007, to close the current year in Dec 2007.

If they have not passed such a resolution, they may close the year as usual in March 2008. The next financial year can be ending in Dec 2008, by passing a resolution either now or any time before 31st Dec 2008.

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CA. Kirti S. Ganatra

CA. Kirti S. Ganatra (Expert)
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15 February 2008 They can chenge financial year. But please consider that there income tax calculation will be only from 1st April to 31st March base. So, there will be dual calculation. Form April to December and second from January to March. Then club the both and apply Income Tax provision.

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