Government says there is no plan to extend the Financial Year

The Union Government today said that there is no extension of the financial year from April 1 to July 1, as it was being talked about. The government through a notification clarified that the beginning of the fiscal year (2020-21) would begin normally on April 1, 2020.

Finance Ministry said that the Department of Revenue yesterday issued a notification that relates to certain amendments to the Indian Stamp Act. It pertains to putting in place an efficient mechanism for collection of Stamp Duty on Security Market Instruments transactions through Stock Exchanges or Clearing Corporation authorized by Stock Exchanges Depositories.

There were demands to extend the financial year in light of the shutdown that was put in place to combat the coronavirus, COVID-19. There was a demand that this financial year should be made a 15-month year - which was different from other financial years – to combat the COID-19.

This change was earlier notified to be implemented from April 1, 2020. However, due to the prevailing situation, it has been decided that the date of implementation will now be postponed to the first of July.

The Reserve Bank of India on February 15, 2020, announced that it will change its financial year to align its financial year with the governments.