Why is financial year from 1st april

Others 1055 views 3 replies

Neha sharma

1257 Points Joined February 2012

Why does the Financial Year in India start from 1st April and not from 1st January unlike the US and other western countries which prepare balance sheet from 1st Jan to 31st Dec??

Just like the DIrect Tax Code is doing away with the concept of "Assessment Year" and "Previous Year" - cant we remove the difference between "Financial Year" and "Calender Year" ???

Replies (3)

Deepak Parsai

Future CA

623 Points Joined December 2008

Well, iska answer aap khud de sakte hai, u will find your answer automatically when you answer my question i.e. Why pronounsation of "go" is different from "to" and "do".? Meaning to say, we should not give attention to such kind of things where we can get only one popular answer i.e. "kyoki law me likha hai".

Harsh Gupta

Sr. Accounts Officer

29 Points Joined March 2009

In my opinion, Accounting statndard are based in India upon our Parmprik methods of bahi khata. The main aspect is Vikrami Sanwat NavVarsh which starts Hindu Nav Varsh offenly from April to March. In past method of accounting in period of Raja Maharaja prepare theire accounts on basis of Vikrami Sawant and All our festivals and religius thinking based on Thithis, Nakshatra, Yog etc. which cont. and basis of todays accounting F.year in India.