No Extension Of Financial Year Due To COVID-19, Says Finance Ministry Amid Fake News

Amid the massive circulation of a fake news that the financial years was being extended from March 31, 2020 to July 1, 2020, the Union Finance Ministry clarified that there is no such decision.

"There is no extension of the financial year", said the Ministry in a press release.

The basis for the fake news was the misinterpretation of a notification issued by the Department of Revenue (SO 1226(E)) which related to certain amendments to the Indian Stamp Act. It pertained to putting in place an efficient mechanism for collection of Stamp Duty on Security Market Instruments transactions through Stock Exchanges or Clearing Corporation authorized by Stock Exchanges Depositories. This change was earlier notified to be implemented from 1st April, 2020. However, due to the prevailing situation, it has been decided that the date of implementation will now be postponed to July 1.

However, some sections misconstrued this notification to be extending the Financial Year.

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