Shankar Acharya Committee

Related with : When should a financial year start and what are merits/demerits of different dates

The committee has been tasked to examine the merits and demerits of various dates for the commencement of the financial year including the existing date (April to March) by taking into account the various relevant factors
Terms of Reference:
  • It will take into consideration suitability of the financial year from point of view of
    • Correct estimations of receipts and expenditure of Union and State Governments
    • Effect of the different agricultural crop periods
    • Relationship of financial year on the working season
    • Impact on business
    • Taxation systems and procedures
    • Statistics and data collection
    • Convenience of the legislatures for transacting budget work
  • Recommend the date of commencement of the financial year which in its views is most suitable for the country
  • In case the committee recommends change in financial year, it will also work out on the modalities for effecting the change :
    • Appropriate timing of change
    • Determination of transitional period
    • Changing tax laws during transitional period
    • Amendments needed in various statues
    • Changes in coverage of the recommendations of the Finance Commission.



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