# Parishist 9 & 10

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31st of march is an important date for a person having a salary income or person engaged in any business operating activity because financial year end on 31st March every year in India. Canada, New Zealand, Japan are some countries that still follow the April to March period as the financial year some country adopt and follow their Calendar year as Financial Year. A fiscal year (Financial Year) is the period used by governments for accounting and budget purposes.

History behind Financial Year ending on 3st March.

Inheritance form business rule: British had control over India for around 150 years, British follow the accounting period of April to March, British Government followed the accounting year for formulating annual budget on the basis of anticipated revenue receipt that determine the expenditure, after that the East India Company (EIC) started following the same accounting pattern for accounting and budget purposes, after independence Indian government too followed the same fiscal year.

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Agriculture System: Agriculture being a major source of income in India, the estimation of the yields harvested in the month of February and March are calculated and forms a basis to decide the income and expenditure for the next year starting from 1st April for farmers and Indian Government.

Tradition and Culture: The Hindu festival occur during the month of march and April one of them is “Vaisakha”. Hindu follow Vaisakha as a new Year since past. It may be the reason why the Indian government tend to consider 31st March as end of a Fiscal year.

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Things you must know and do before Financial Year end.

31st March is a day by which important financial obligations should be fulfilled, transaction accrued upto31st march shall be recorded in the books of account on the basis of actual receipt and payment.

1) Calculate advance tax payable and payment of advance tax for specified period as per rules and provisions of The Income Tax Act 1961 as amended time to time.

2)Investment/Payment shall be made before 31st March to sax tax and claim for deduction allowed.

3)valuation of inventories and Assets shall be done in order to make plans regarding expansion of business either internally or externally.

4)Claim additional depreciation and incentives.

5)Find out the gain or loss from operation or running a business.

6) Valuation for preparation of income and expenditure account, Financial statements of the company, Cash-flow statement, Fund-flow statement for computation of total income or loss from the business reporting, filing and disclosure.

7)Set off of carry forward losses of previous years and unabsorbed depreciation.

8)Clear loans payable or receivables to make financial statements positive and favourable also to determine the perfect capital structure for the entity.

9)Calculation of Turnover for GST purpose and reconcile the Cash Ledger, Credit Ledger and Liability Ledger on GST portal with their books of account as per Acts, rules and provisions made thereunder.