Do Financial Year 2019-20 been extended to 30th June 2020
Rumor 1- Based on Mis-Interpretation of RBI Notification
There are lots of confusions as to 31st March vs. 30th June 2020 extension by the announcement of Finance Minister Smt. Nirmala Sitharam. The messages are being shared widely on social media with a claim that Reserve Bank of India (RBI) has extended financial year closing till 30 June 2020 and that the next financial year will be from 01 July 2020 to 31 March 2021.
Honorable Finance Minister in Press Conference dated 24th March 2020 announced the extension of due dates for statutory compliances as 30th June 2020 due to coronavirus and countrywide lockdown situation.
RBI has not extended financial year followed by the government & all other institutions including for taxation purposes that are 01 April to 31 March. RBI’s accounting/financial year is 01st July to 30th June that is different from the Government’s fiscal year
The confusion arises as RBI in its Board Meeting recommended aligning the financial year of RBI, currently July-June, with the Government’s fiscal year (April-March) from the year 2020-21 and approved forwarding a proposal to the Government for its consideration. The Central Board of the RBI, in a meeting at New Delhi on Saturday, finalized that the fiscal year 2021-22 for the central bank will start from April 01.
RBI’s resetting of its financial year in alignment got nothing to do with coronavirus The central government’s Press Information Bureau has asked people to steer clear of rumors on changes in Reserve Bank of India’s financial year. In a tweet, PIB said: “The recommendation by RBI of resetting its financial year (currently July – June) in alignment with Govt’s financial year (Apr-Mar) has got nothing to do with Coronavirus.”
Rumor 2- Based on Mis-Interpretation of Notification under the Indian Stamp Act, 1899
Yesterday one More Rumor was circulating about the extension of Financial Year 2019-20 to 30th June 2020 by Misinterpreting the Notification which was issued under the Indian Stamp Act, 1899. Detailed information for the same can be accessed at the following link-
No Extension of FY- Notification relates to the Indian Stamp Act, 1899
Conclusion-
Based on the above It is very clear that for the current year, due dates for statutory compliances have been extended till 30th June 2020 and there is no change/extension in Financial Year 2019-20.
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