ONE COMPANY IS INCORPORATED ON 28.01.2009 & FINANCIAL YEAR OF THE COMPANY IS TAKEN AS 28.01.2009 TO 31.03.10. BALANCE SHEET & PROFIT & LOSS ACCOUNT IS PREPARED FOR THAT PERIOD. BUT FOR INCOME TAX PURPOSE FINANCIAL YEAR IS OF 12 MONTHS ONLY. WHAT CAN DO ? CAN DIFFERENT FINANCIAL STATEMENTS CAN BE PREPARED FOR ROC & INCOME TAX PUPOSE. WHETHER AUDITOR CAN SIGN ON TWO STATEMENTS ?
2 Replies
Maneesh
(Partner)
(109 Points)
Replied 06 March 2011
Sowmya, as I understand your query, you want to know whether the accounts prepared for the period 28-01-2009 (date of incorporation) to 31-03-2009 (financial year ending) will suffice for both income-tax and company law purposes? The answer is yes. Under companies act, a company has the option to select its financial year whereas under income-tax the tax year always ends on 31-March. Since the company has opted to have its financial year ending on 31-March, it coincides with the requirement of the income-tax act and the same accounts will suffice for both purposes.
In such a situation, the accounts for income-tax cannot be for a period of 12 months. The company has not been in existence for a period of 12 months
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