I have always wondered why March is chosen as the #financial year ending for businesses. This system was adopted by the British government in 1867 to align India’s financial system with the British Empire.
Significance of #March month in India:
1. Historical significance: March aligns with traditional #accounting practices, making record-keeping and tax accounting convenient.
2. Agricultural cycle: Harvest season on closing, may assess their #performance and plan for next cycle.
4. Taxation purposes: Businesses and individuals can file #tax returns and settle any outstanding liabilities before end of fiscal year.
5. International alignment: Ending the financial year in March is consistent with #internationalstandards too.
Comments