Financial year 2020 changed due to coronavirus lockdown? Fake news? Here is TRUTH

The Finance Ministry said that a notification has been issued by the Department of Revenue, Ministry of Finance on 30th March 2020 which relates to certain amendments to the Indian Stamp Act.

This is about extending the date of coming into effect of certain provision of budget 2019 which were to come into effect from 1st April 2020. Photo: Reuters

Financial Year 2020 Change: After social media and some mainstream media reported that the current financial year has been extended till June, 2020, the public got confused as to how this will work out, especially for the earning individuals who are yet to file their income tax return for the AY2018-19 the last date for which has been extended to 30th June 2020 from 31st March 2020. Sensing the confusion among taxpayers and corporates, the finance ministry came forward and termed these as mere rumors.

The Ministry of Finance issued a press statement in regard to the extension of the financial year saying, "There is a piece of fake news circulating in some section of media that the Financial Year has been extended. A notification issued by the Government of India on 30th March 2020 with respect to some other amendments done in the Indian Stamp Act is being misquoted. There is no extension of the Financial Year."

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The Finance Ministry said that a notification has been issued by the Department of Revenue, Ministry of Finance on 30th March 2020 which relates to certain amendments to the Indian Stamp Act. "It pertains to putting in place an efficient mechanism for collection of Stamp Duty on Security Market Instruments transactions through Stock Exchanges or Clearing Corporation authorized by Stock Exchanges Depositories. This change was earlier notified to be implemented from 1st April, 2020. However, due to the prevailing situation, it has been decided that the date of implementation will now be postponed to 1st July 2020," the finance ministry said.

Speaking on how some of the mainstream media houses got confused over the financial year 2020 change, Balwant Jain, a Mumbai-based tax expert said, "A lot of people are circulating this as notification for change of financial year, which is not true. This is about extending the date of coming into effect of certain provision of budget 2019 which were to come into effect from 1st April 2020. Now, these provisions relating to the mode of payment shall come into effect from 1st July 2020." So, in simple words, it is not about financial year extension, said Jain.

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