Govt. examining desirability and feasibility of a new financial year than April to March by constituting a committee for suggesting changes

Govt. examining desirability and feasibility of a new financial year than April to March by constituting a committee for suggesting changes

F.No.1(17)-B(AC)/2010
Ministry of Finance
Department of Economic Affairs
(BUDGET DIVISION)

North Block, New Delhi,
Dated the 6th July, 2016

The Government hereby constitutes a Committee to examine the desirability and feasibility of having a new financial year.

2. The composition of the Committee is as follows:

3. The terms of reference (ToR) of the Committee are as under:

Examine the merits and demerits of various dates for the commencement of the financial year including the existing date, taking into account, inter-alia, the following:

(i) The genesis  of the current financial year  and the studies made  in the past on the desirability of change in financial year;

(ii) The suitability of the financial year from the point of view of-

a. correct estimation of receipts and expenditure of Central and State Governments;

b. the effect of the different agricultural crop periods;

c. the relationship of financial year to the working season;

d. impact on businesses;

e. taxation systems and procedures;

f. statistics and data collection;

g. the convenience of the legislatures  for transacting  budget work; and

h. other relevant matters

4.  The Committee may, after due examination of all relevant factors, recommend the date of commencement of the financial year which in its view is the most suitable for the country:

5. In case a change in the financial year is recommended, the Committee may also work out the modalities for effecting the  This would inter-alia include:

• appropriate timing of change;
• the determination of a transitional period;
• the change in tax laws during the transitional period;
• the amendments that may be required in various statutes; and
• changes  in  the  coverage  of  the  recommendations  of the Finance Commissions

6. The Committee  may  interact with experts, institutions, Government Departments and others as deemed necessary .

7. The orders regarding Secretariat  support,  other administrative  expenses  and other relevant matters shall be issued.

8. The Committee shall submit its report to the Government by 31st December, 2016.

(Prashant Goyal)
Joint Secretary ( Budget)