The government has clarified that there is no extension of the current Financial Year 2019-20 and it will end as scheduled on March 31, 2020. The finance ministry issued the clarification following a fake news circulating in some media that claims that the Financial Year 2019-20 has been extended.to July 1, 2020.
Some section of media reported that the financial tear is extended to July 1. It referred to a notification issued by the Finance Ministry on 30.03.2020 according to which certain provisions of Indian Stamp Act is extended to July 1, 2020.
The Notification dated 30.03.2020 is issued to modify the date of applicability of the provision from April 1, 2020, to July 1, 2020. The original notification was issued on 08-01-2020 which set the applicability date as on April 1, 2020. However, owing to prevailing COVID-19 pandemic situation, it's applicability is deferred till July 1.
Some media interpreted it as the extension of financial year since the notification dated 30.03.2020 only modified the date of applicability.
The Notification reads as follows-
S.O. 1226(E).—In exercise of the powers conferred by section 11 of the Finance Act, 2019 (7 of 2019), the Central Government hereby makes the following amendments in the notification of the Government of India, Ministry of Finance, published in the Gazette of India vide S.O. 115 (E), dated the 8th January, 2020 namely:—
In the said notification, for the words and figures “the 1st day of April 2020, the words, figures and letters “the 1st day of July 2020” shall be substituted.
The last para of the notification has created the confusion. Hence, the finance ministry clarified that there is a fake news circulating in some section of media that the Financial Year has been extended.
Press Note: No Extension of the Financial Year.@FinMinIndia pic.twitter.com/am51BEQUN4— Income Tax India (@IncomeTaxIndia) March 30, 2020
A notification issued by the Government of India on 30th March 2020 with respect to some other amendments done in the Indian Stamp Act is being misquoted.
Certain social media messages were circulated with a copy of this notification and wrongly claimed that the financial year is extended.
In a press release dated 30-03-2020 issued by the finance ministry, it is clarified that there is no extension of the Financial Year.
This means the financial year 2019-20 will end on the scheduled date of March 31, 2020. The next financial year 2020-21 will begin on April 1, 2020.
The Finance Ministry said that a notification has been issued by the Department of Revenue, Ministry of Finance on 30th March, 2020 which relates to certain amendments to the Indian Stamp Act.
It pertains to putting in place an efficient mechanism for collection of Stamp Duty on Security Market Instruments transactions through Stock Exchanges or Clearing Corporation authorized by Stock Exchanges Depositories.
This change was earlier notified to be implemented from 1st April, 2020. However, due to the prevailing situation, it has been decided that the date of implementation will now be postponed to 1st July 2020.
Earlier similar fake news on the extension of the financial year was circulated in social media citing that Reserve Bank of India (RBI) has extended the closing of the financial year till 30.06.2020 after RBI planned to align its financial year with the centre.
Although the financial year of the government & all other institutions including for taxation purpose in India is followed from April 1 to March 31, however, in the case of RBI, the financial year is from 1 July to 30 June.
Recently, RBI finalised that the financial year 2021-22 for the central bank will start from April 1. Fiscal 2019-20 will end on June 30, 2020 while the financial year 2020-21 will be beginning on July 1, 2020, but will end on March 31, 2021. Thereafter, all fiscal year will begin on April 1 of every year.
On 24.0302020, Finance Minister Nirmala Sitaram announces several relief measures relating to Statutory and Regulatory compliance matters across Sectors in view of COVID-19 outbreak.
Certain compliances dates ending on March 31 were extended to June 30 without any penal or default consequences.
It inter-alia includes:
1. extending the last date for filing of income tax returns for FY 18-19 from 31st March, 2020 to 30th June, 2020.
2. extending Aadhaar-PAN linking date from 31st March, 2020 to 30th June, 2020.
3. extending date of payment without additional 10% amount under Vivad se Vishwas scheme from March 31 to June 30, 2020.
4. extending the time limit for investment in saving instruments to 30th June 2020.
In the above cases, the extension is only with respect to compliances and not the extension of the financial year itself.
Read the
relief announcement: Relief
measures announced by Finance Minister on Income Tax and Other Compliances amid
COVID-19 outbreak
Read the full text of the press note issued by the Ministry of Finance on 30.03.2020.
Ministry of Finance
Government of India
Government of India
No Extension of the Financial Year
Press Note
30.03.2020
There is a fake new circulating in some section of media that the Financial Year has been extended. A notification issued by the Government of India on 30th March 2020 with respect to some other amendments done in the Indian Stamp Act is being misquoted. There is no extension of the Financial Year.
The Finance ministry said that a notification has been issued by the Department of Revenue, Ministry of Finance on 30th March, 2020 which relates to certain amendments to the Indian Stamp Act. It pertains to putting in place an efficient mechanism for collection of Stamp Duty on Security Market Instruments transactions through Stock Exchanges or Clearing Corporation authorized by Stock Exchanges Depositories. This change was earlier notified to be implemented from 1st April, 2020. However, due to the prevailing situation, it has been decided that the date of implementation will now be postponed to 1st July 2020.
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