No Extension of FY- Notification relates to Indian Stamp Act, 1899

Recently a message is circulating on Social Media which claims that Financial Year 2019-20 ending on 31.03.2020 is been extended to end on 30.06.2020. With this message a Government notification issued by Ministry of Finance is also been circulated. Here we would like to clarify that this notification is not fake but someone either deliberately or by mistake interpreted it wrong to interpret the same as notification for extension of financial year to 30.06.2020.

We have found the notification been hosted on following website, which is a Government website and same proves that notification is not fake but interpretation of the same on Social Media is fully wrong-

http://egazette.nic.in/WriteReadData/2020/218957.pdf

So what Notification is all about?

Vide this notification actually Central Government appoints 01.07.2020 instead of 01.04.2020, as the date on which the provisions of Part I of Chapter IV related to Amendments to Indian Stamp Act, 1899 which were notified by Finance Act, 2019 (7 of 2019).

Deferment of amendment applicable to Indian Stamp Act, 1899

 Notification actually deferred the applicability date of several amendments carried out by finance act, 2019 in respect of key definitions (such as “allotment list”, “banker”, “depository”, “issuer”, “marketable security”, “instrument”, “securities”, “market value”, “stock exchange” etc.) given under section 2 of Indian Stamp Act, 1899. Earlier these amendments were applicable from April 01, 2020, now post aforesaid notification, these will be applicable from July 01, 2020.

Also Read- Do Financial Year 2019-20 been extended to 30th June 2020

Extension of Financial Year-Do We Really Need ?

Due Date for Income Tax Investments for FY 2019-20 – 30th June or 31st March 20

Also Read Following Press Release from CBIC-

Ministry of Finance

Government of India

Press Note

30.03.2020

No Extension of the Financial Year

New Delhi: There is a take news circulating in some sections of media that the financial year has been extended. A notification issued by the Government of India on 30^th 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.

Finance ministry said that a notification has been issued by Department of Revenue, Ministry of Finance dated 30^th 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 1 April, 2020. However, due to the prevailing situation, it has been decided that the date of implementation will now be postponed to 1.7.2020.

Source-  https://twitter.com/cbic_india/status/1244671644372615177

Read the text of notification as below-

MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION

New Delhi, the 30th March, 2020

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.

[F. No. S.33013/3/2019 ST-I, DOR]

RITVIK PANDEY, Jt. Secy.

Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide number S.O. 4419 (E), dated the 10th December, 2019 and subsequently amended vide notification dated 8th January, 2020, published vide number S.O.115 (E) dated the 8th January, 2020.