Expert query - financial year for pvt/pub co.

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.