Extension of financial year??

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 June 2012 A company was incorporated on 21-12-2010 can it extend its financial year from ending 31-03-2011 to ending on 31-3-2012? what needs to be done regarding same for ROC & Income tax compliance part compliance part?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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30 June 2012 A financial year is a period of twelve months and the accounts of a company for a financial year shall be placed at every annual general meeting. But in certain circumstances a financial year may be for less than a year or it may be for more than a year as in the case of the first annual general meeting but is shall not exceed fifteen months.

The Registrar has power to extend a financial year up to eighteen months in terms of the proviso under section 210 (4) of the Act. The company shall make an application in the prescribed e-Form 61 with the Registrar before the due date for closing of the financial year. The application may be made by a letter giving full justification for seeking extension of time certified by the chartered accountant or company secretary or cost accountant in practice.

Where a company proposed to extend its financial year and in that process requires extension in time for holding its annual general meeting it shall make an application in the e-Form 61 with the Registrar of Companies for extending financial year under section 210 (4) and for granting extension in time for holding annual general meeting under the proviso to section 166 (1).