What is the reason for starting Financial Year from April to March in India. In all of other countries the Financial Year starts from January to December
Start of Financial Year
(Guest)
What is the reason for starting Financial Year from April to March in India. In all of other countries the Financial Year starts from January to December
Varun.T.K
(CA Final, CS Executive)
(365 Points)
Replied 19 January 2010
Financial Year can be started from any month of the year. It can be from January-December, June-May and so on. However, it is for the purpose of Income Tax that we are following Apr-March period. Otherways, it could be cumbersome for the concerned entity to prepare one set of books for Income tax and other set of books for their own requirement.
However still , many concerns are following the financial years those deviate from the income tax based concept of financial year.
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