Why is the beginning of financial year on 1 April?
Every financial year starts on April 1 and ends on the March 31. Do you know why the financial year is taken from April to March? It becomes very important for us to know what is accounting year, financial year. The question that arises in the mind all of us is why the financial year starts from April 1 itself. In such a situation, it becomes important to know why the financial year starts from 1 April, while the new year starts from 1 January.
Inheritance from British rule
India is not the only country who follows this trend of April to March. There are other countries also follow a similar trend. This tradition started in India in the year 1867.
By the way, according to India, the British used to collect rent from Indian farmers. In the British Raj, the highest taxes were collected from farming. In such a situation, this date was also fixed keeping in mind the annual budget crop sowing and harvesting. So, the financial year in India begins from the period of April and March 31 is the closing of the financial year.
Regional new year
April 1 coincided with the 'Hindu festival' of Vaisakha or the Hindu New Year. Hence, this may be the reason why the government also thought of starting the financial from April to March in India.
33 countries, including India, consider their financial year from April 1 to March 31.