Rumor 1- Based on Mis-Interpretation of RBI Notification

There are lots of confusions as to 31st March vs. 30th June 2020 extension by the announcement of Finance Minister Smt. Nirmala Sitharam. The messages are being shared widely on social media with a claim that Reserve Bank of India (RBI) has extended financial year closing till 30 June 2020 and that the next financial year will be from 01 July 2020 to 31 March 2021.

Honourable Finance Minister in Press Conference  dated 24th March 2020  announced extension of due dates for statutory  compliances as 30th June 2020 due to coronavirus and country wide lock down situation .

RBI has not extended financial year followed by the government & all other institutions including for taxation purpose that is 01 April to 31 March. RBI’s accounting/financial year is 01st July to 30th June that is different from Government’s fiscal year

 The confusion arises as RBI in its Board Meeting recommended aligning the financial year of RBI, currently July-June, with the Government’s fiscal year (April-March) from the year 2020-21 and approved forwarding a proposal to the Government for its consideration. The Central Board of the RBI, in a meeting at New Delhi on Saturday, finalised that the fiscal year 2021-22 for the central bank will start from April 01.

RBI’s resetting of its financial year in alignment got nothing to do with coronavirus The central government’s Press Information Bureau has asked people to steer clear of rumors on changes in Reserve Bank of India’s financial year. In a tweet, PIB said: “The recommendation by RBI of resetting its financial year (currently July – June) in alignment with Govt’s financial year (Apr-Mar) has got nothing to do with Coronavirus.”

Clarification on FY extension by PIB

Rumor 2- Based on Mis-Interpretation of Notification under Indian Stamp Act, 1899

Yesterday one More Rumor was circulating about extension of Financial Year 2019-20 to 30th June 2020 by Misinterpreting the Notification which was issued under Indian Stamp Act, 1899. Detailed information for the same can be accessed at the following link-

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

Conclusion-

Based on above It is very clear that for current year, due dates for statutory compliances have been extended till 30th June 2020 and there is no change / extension in Financial Year 2019-20.

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4 Comments

  1. S. B. Som says:

    Mere bookish knowledge cannot make one expert. Rather they are confused person loaded with overcrowding of knowledge by virtue of Institutional Certificates. They have little hands-on to ground realities not compatible with their backdated knowledge. Moreover, they aren’t bold enough to take practical decision. They just take decision to create more indecision due to immature ego having little relevance to crisis situation.

  2. S.K.Agarwal says:

    What a shame even the experts are rendered confused owing to random haphazard piecemeal announcements from FM. A UNITED voice from CA fraternity must pressurize FM, to make things simpler to comprehend for the common man, would be to extend the current F.Y. to 30.06.2020 for ALL purposes i.e. 15 months instead of 12 months.

  3. Dhara says:

    Hi,
    How can we get our article published in taxguru? Does taxguru pay for writing articles?

    Any other platform, which pays for writing articles?

    How to do blogging for our field topics? If you have any idea of special platform for commerce, please do share.
    When I searched, I found most of them related to digital marketing.

    Please guide me.

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