Current fiscal year will end as scheduled on March 31, not extension: Govt

The government has not extended the current 2019-2020 fiscal year and it will end on schedule on March 31, the Finance Minister announced on Monday.

PTI has incorrectly stated that the new fiscal year will begin on July 1. The alert and related reporting has been removed.

“There is no extension of the fiscal year,” said the finance ministry.

Officials said a notification published in the Gazette on Monday evening concerned the date of application of the stamp duty, which was changed from April 1 to July 1.

The industry has requested a three-month extension to the fiscal year given the economic impact of the Covid1-19 outbreak.

The finance ministry said in a statement that changes had been made to the Indian Stamp Act (ISA) by extending the effective date from April 1 to July 1, 2020.

To streamline and harmonize the stamp duty collection system and help fight tax evasion, the government had, through the 2019 finance law, amended the Indian stamp law of 1899. Some changes were scheduled to take effect on April 1, 2020.

By notification, the Ministry of Finance has declared that these amended provisions will come into force on July 1, 2020.

As part of the modifications, it was decided that the stamp duty rates collected by Maharashtra would be taken as a reference because they represent 70% of the total collection.

It has been modified to indicate that stamp duty will have to be paid by the buyer or seller of a financial guarantee, contrary to the current practice of collecting the duty on both.

“It is a question of setting up an effective mechanism for collecting stamp duties on transactions in securities market instruments through stock exchanges or clearing companies authorized by stock exchanges and depositaries”, a- he declared. “This change was notified earlier to be implemented from April 1, 2020. However, due to the current situation, it has been decided that the implementation date will now be postponed to July 1, 2020.”

In January of this year, the government postponed the effective date from January 9 to April 1, 2020.

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