The 150-year-old tradition of the April-March fiscal year is up for review in India. The tradition introduced by the British has caught the eye of PM Narendra Modi who has pitched for a shifting to the January-December fiscal year.
“Because of poor time management, many good initiatives and schemes had failed to deliver the anticipated results,” Modi had said at a NITI Aayog Governing Council meeting, adding there is a need to develop robust arrangements that could function amidst diversity.
The shift is in tune with the current global practice as most big economies, IMF and even the World Bank follows the January-December cycle. As a matter of fact, 156 nations follow calendar year as compared to the financial year.
A change in the financial year would require amendments in various statutes and changes in tax laws during the transitional period.