Govt appoints Committee to examine new financial year

The Government of India has constituted a Committee to examine the desirability and feasibility of having 'a new financial year'.

The Committee comprises of four members which will be headed by Dr Shankar Acharya as Chairman and K M Chandrasekhar, P V Rajaraman and Dr Rajiv Kumar as members, cited the Ministry of Finance Department of Economic Affairs release on Wednesday.

The Ministry of Finance tweeted on Wednesday:

Govt has constituted a Committee headed by Dr.Shankar Acharya,former CEA to examine desirability& feasibility of having a new financial year

— Ministry of Finance (@FinMinIndia) July 6, 2016

The details on composition and terms of reference of the Committee are uploaded on the website of the Ministry of Finance, it tweeted.

Details on Composition &Terms of Reference of the Committee are being uploaded on website of Ministry of Finance (https://t.co/wApBegw6oN).

— Ministry of Finance (@FinMinIndia) July 6, 2016

The Committee will examine the merits and demerits of various dates for the commencement of the financial year including the existing date and the following terms of reference: 

1. The genesis of the current financial year and the studies made in the past on the desirability of change in financial year. 

2. The suitability of the financial year from the point of view of correct estimation of receipts and expenditure of Central and State Governments,the effect of the different agricultural crop periods, the relationship of financial year to the working season, among others. 

3. The Committee may, after due examination of all relevant factors, recommend the date of commencement of the financial year which in its view is most suitable for the country. 

4. In case a change in the financial year is recommended, the Committee may also work out the modalities for effecting the change. This would inter-alia include appropriate timing of change, the determination of a transitional period, the change in tax laws during the transitional period, etc., 

5. The Committee may interact with experts, institutions, government departments and others as deemed necessary. 

6. The orders regarding Secretariat support, other administrative expenses and other relevant matters shall be issued separately, the release said. 

7. The Committee shall submit its report to the government by December 31, 2016. 

The Committee has been given time till 31st December, 2016 to submit its Report taking into account the various relevant factors.

— Ministry of Finance (@FinMinIndia) July 6, 2016