Why does the new financial year start in april?
Answers:
the concept of presenting of the budget on 28th of Feb is related to agricultural harvest in British kingdom and relates to their presentation of the budget as the harvest was complete in England by that time the British parliament chose the date of presentation of the budget and one month was allowed to discuss and pass the same and get queens approval on the matter and thus came into effect from 1st of April. the companies followed the rule and made 1st April to 31 DEC its accounting year. and in most of the countries the British have ruled including India the rule is still followed
The concept you are asking about is called fiscal year. The government allows businesses to begin their business year at a time other than the calendar year. If a business was created on April 1 then the IRS allows them to keep books from April to April. You and I have to conform to the calendar year, Jan to Jan.
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