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No extension of Financial Year 2019-20 beyond March 31

Team SoOLEGAL 2 Apr 2020 2:19pm

No extension of Financial Year 2019-20 beyond March 31

NEW DELHI: Contrary to previous reports, the Ministry of Finance has stated that there will be no extension to the financial year 2019-20. "There is no extension of the financial year", said the Ministry of Finance. "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 authorised by Stock Exchanges Depositories", a CBIC statement said.

Through a notification, the government clarified that it has not modified the start of its financial year from April 1 to July 1as claimed by some social media posts. The fiscal year 2020-21 will like usual, begin on 1 April.

The government had amended the Indian Stamp Act, 1899 through the Finance Act,2019, to rationalize and harmonize the method of levying stamp duty and help curb tax evasion. Certain amendments were made to be in effect from 1stApril 2020. It was agreed as part of the amendments that the stamp duty rates imposed by Maharashtra would be taken as a benchmark as it accounts for 70 percent of the total collection. It was amended to state that the stamp duty will have to be paid by either the buyer or the seller of financial security, as against the current practice of levying the duty on both.



Tagged: Financial Year   Ministry of Finance   Indian Stamp Act   Finance Act   amendments  
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