Mention the Financial Year or Fiscal Year of India
By BYJU'S Exam Prep
Updated on: November 9th, 2023
The Financial Year or Fiscal Year of India starts from the 1st of April of a year and lasts till the 31st of March of the following year (next coming year). The financial year helps to prepare all necessary policies, financial rules, and government budget. The government prepares the annual financial statements. This statement contains the main budget documents of the government.
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Financial Year or Fiscal Year of India
The term financial year or fiscal year is defined as the period of time (1 year) in which income is earned. The Annual Financial Statement of India is documented as the main budget given by the Finance Minister of India. The document shows expenses and revenues for the financial year. This document is transferred by the legislature and then signed by the President or the Chief Executive.
Here are the most expected answers to why the financial year in India starts from 1st April, not 1st January:
- The UK fiscal year begins on 1 April. The British applied the same concept to their country and India before independence. After independence, India did not change the concept.
- The months of November and December are considered the months of festivals. During this period, inventory is very fast. Also, employees of many organizations are on leave.
- The crop season in India starts in April and ends in March.
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