Nov 8, Modi declared demonetisation, now what’s next of 31st December he is planning?
New Delhi, financial Year change 2017: After the government hit high with the demonetisation move, Prime Minister Narendra Modi is planning yet another big overhaul, shifting the financial year to January and December, according to reports.
According to few reports, the Prime Minister has taken the issue of scrapping the income tax, currently running from April to March and is seriously looking to chalk-out the strategy to implement the new policy.
The government-appointed a panel, set up this July, headed by ex - chief monetary adviser Shankar Acharya, has recommended changing the financial year to January to December, which could end the 150-year old British tradition of April to March fiscal introduced by the British.
"The panel unanimously supported the move and feels that a shift is possible", Acharya said, adding that we have submitted our report to the central government minister Arun Jaitley earlier this week. "
If the government changes its financial year, the Tax Work and Companies act need to be amended.
Besides Acharya, an Oxford- and Harvard-educated economist, the other panel members included former cabinet secretary KM Chandrasekhar, former Tamil Nadu finance secretary PV Rajaraman, and Rajiv Kumar, a senior fellow were part of this research team.
Experts are divided on the committee's proposal.
"In the first 12 months of any such changes, typically, things do not remain comparable. People have to compare 12-month data with nine months, which will be challenging. The government will need to ensure that whenever it changes, the financial year is applicable for everyone, "Garg added.
However whether or not such an overhaul will be carried out will depend on cosiness level of the government.