Hello Everyone,
Can we have a Financial Year Greater than 12 months? Not for the first year only, but for every year?
Is it permitted to Have so?
Please Quote Relevent Sections of Companies.Act If Possible.
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Expert query - financial year for pvt/pub co.
Replies (3)
Yes Anil, as per the section210 of the companies act, financial year for companies (both public and private) can be more than 12 months but it should not exceed a period of 15months. And it may exceed upto 18months only with the special permission of the Registrar.
Though sec. 210(4) provide for extension of financial year upto 3 months, no company is allowed to increase its term, every year. For reasonable causes, company can increase the term of its financial year but not always. (Circular no.8/99 dated 21.10.1999, F.No. 5/38/99-CL-V)
Also, for income tax purposes, income have to be declared for the year ending 31st march. If for any year, assessee wants to close its accounts on any other date, he can do so but in that case also, income has to be separately worked for the accounts ending 31st march.
Thanks Shridhi for further info on this.
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