Narendra Modi-led government on Wednesday said it has constituted a Committee to examine the desirability and feasibility of having a ‘new financial year’. It will be headed by former Chief Economic Advisor (CEA) Shankar Acharya, as the chairman.
The Committee, which shall submit its report by December 31, may interact with experts, institutions, Government Departments and others. It will, after examination, recommend the date of commencement of the financial year.
“It will examine merits and demerits of various dates for commencement of a financial year, including the existing dates (April-March),” Finance Ministry said.
Besides Acharya, the members of the committee are former Cabinet Secretary K M Chandrasekhar, former Finance Secretary Tamil Nadu P V Rajaraman and Centre for Policy Research Senior Fellow Rajiv Kumar.
The committee will have to provide reasoning for the suitability of the financial year from the point of view of correct
In case a change in the financial year is recommended, the Committee may also work out modalities for effecting the change, which would include appropriate timing of change, determination of a transitional period, the change in tax laws during the transitional period. It will also have to work out modalities for the amendments that may be required in various statues and changes in the coverage of the recommendations of the Finance Commission.