CONFUSION ABOUT FINANCIAL – IMPLICATIONS OF CLOSING YEAR 2020

Bureau,Odishabarta

CONFUSION ABOUT FINANCIAL-IMPLICATIONS OF CLOSING YEAR SHOULD BE REMOVED BY EXTENDING PRESENT FISCAL-YEAR TILL 30TH JUNE 2020

DELHI:Union Finance Minister Nirmala Sitaraman in her press-conference on 24.03.2020 as part of economic-relief measures due to Corona-spread announced extension of several aspects from 31^st March 2020 to 30^th June 2020, but keeping just a little short of extending fiscal-year till 30^th June 2020. There was no announcement regarding mega-merger of public-sector banks from 1^st April 2020. Likewise government-notification in this regard might have missed some other aspects concerning switch over of fiscal year from 31^st March 2020 to 1^st April 2020.

One practical aspect is physical stock-taking by traders on last day of closing year, which could not be done on 31^st March 2020 because of sudden lock-down of shops in Delhi practically from 22^nd March 2020 implying that traders will have to practically for all purpose will be falsely declaring closing stock as existing on 21^st March 2020 which was not actually taken. Otherwise also taking opening stock on 15^th April 2020 (if lock-out not extended further) after opening of shops after 21-days lock-down will create problem not only for traders but even for shoppers.

Best and only to remove all confusions and false declarations is to extend present fiscal-year from 31^st March 2020 to 30^th June 2020. Opportunity can then be best utilized to switch over to make calendar-year as financial year starting from 1^st January 2021 in tune with most countries of the world and in accordance with repeated recommendations of expert-committees started with one set up with renowned financial expert LK Jha years ago by having current fiscal-year of just six months from 1^st July 2020 till 31^st December 2020.

Input;Ms.Madhu