Change in F.Y - Income Tax requirement

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2010 X Company follows f.y Jan - Dec. This year the co. has decided to extend its f.y and close it in mar, 2011 i.e. for a total period of 15 months. subsequently, the f.y of the co shall be Apr - Mar.

The Co prepares acts for tax audit purpose too (Apr - Mar).

My query is whether the co. is required to take any approval from I.T Authorities to give effect to the change in current f.y as well as the subsequent f.y or a simple intimation to the authorities will serve the purpose?

Expecting replies.
regards.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 December 2010 The financial year is treated as the previous year nowadays.

Company is filing its return on FY basis.
In the coming years also the same basis will be followed.

Hence, in the absence of any specific change, in my view, a simple intimation is quite sufficient.

Querist : Anonymous

Querist : Anonymous (Querist)

18 December 2010 f.y as per the Co's act and I.T act denotes diff meaning. I. T Act is specific about f.y to be a period of 12 months from apr to mar.

Co's act is liberal as to selection of f.y.

I also feel that I.T Act is not bothered about our selection of f . y to close our books and to present them before the shareholders.

f.y as per I.T has always to be the same and can not be changed.

Considering this, i am also of the view that no approval is required to be taken from the I.T Authorities.

Please convey your explanation and comments to it.

regards.