The prime minister asked the states to take the initiative in this regard. Currently, India follows April-March as fiscal year. Do you agree with PM Modi's suggestion to advance the financial year to January-December?
Yes off course I do agree with Prime Minister Modi’s suggestion of advancing the financial year to calendar year of January to December. Modi on Sunday indicated his backing for a January-to-December fiscal year, a move that could bring a reworking of dates for budget presentation and to the financial calendar year, including filing of tax returns.
If we are able to align our numbers with broader global numbers, it makes sense to make calendar year as financial year compared to April-March spread over two calendar years,” said Devendra Pant, chief economist at India Ratings.
Most of the major economies in the world, barring the notable exception of the US, have January-December as their financial year. Besides, most of the large global firms use calendar year for data reporting. Similarly, multilateral agencies such as World Bank, International Monetary Fund and Asian Development Bank use calendar year as financial year.