Can anyone interpreted the financial year definitions.
As per my interpretation (1) if company incorporate in April month than total no. Of month in financial year is 11 month. (2) if company incorporate in January month than total no. Of month in financial year is 14. Please confirm me.....
Financial Year In India Starts from 1st April Every Year which ends on 31st March following year,Unless otherwise any company which is a subsidiary or associate of any Co. incorporated outside India,Which requires alignment of its FY with That of foreign holding then after approval of RD it can change its FY.
In the context of companies act, if you carefully read Relevant section of FY, it Coorleate FY with Its Incorpraation..... Hence the First FY end on the YEAR following it's date of incorporation...
For example - If a Co. Incorprated on 31st December 2018, First FY will end on 31-3-19.
If it's Registered on 1st Jan '19 then First FY will end on 31-3-20...
Also Note that this provision will not overlap income tax or any other laws provision...
CAclubindia
