No Change In Financial Year, Government Clarifies

The government on Monday issued a notification clarifying that there has been no change in the beginning of the financial year 2020-21 on 1 April. The clarification comes after some social media posts making rounds said that the government has changed that start of the financial year to 1 July from 1 April.

The social media post was being circulated after a Gazette notification pertaining to a change in dates for collection of stamp duties was doing the rounds in some circles.

"A notification issued by Govt of India on 30.03.2020 with respect to some other amendments done in Indian Stamp Act is being misquoted. There is no extension of the financial year," the Finance Ministry tweeted.

The Revenue Department had issued an amendment to the Indian Stamp Act on changes in the mechanism for collection of Stamp Duty on Security Market Instruments transactions through Stock Exchanges or Clearing Corporation authorized by Stock Exchanges Depositories which has been postponed from 1 April to 1 July.

There were also demands to extend the financial year was in light of the lockdown to fight COVID-19 outbreak, as a 15-month year would look financials look better compared to the previous year.