Consequential effect of change in financial year in different aspects are given below:
From the viewpoint of Income Tax: The applicant company shall continue to prepare books of accounts and financial statements with financial year starting from April 1st to March 31st or as may be required under the Income Tax Act, 1961, get the books of accounts audited accordingly and file the return of income as per the provisions of the Income Tax Act, 1961.
From the viewpoint of Companies Act: Pursuant to the change in financial year, all the compliances and filings under the Companies Act shall be made as per the new financial year.
Further, it is pertinent to note that the tenure of statutory auditors entails from one annual general meeting to another annual general meeting. Therefore, the change in financial year shall have no effect on the financial period for which the e-form ADT-1 for auditor's appointment was filed and the auditors shall continue to audit the accounts till the number of annual general meeting for which they were originally appointed before the change of financial year.
From the viewpoint of FEMA: The Company shall file the annual return of Foreign Liabilities and Assets (“FLA Return”) to the Reserve Bank of India by July 15th of every year, irrespective of whatever be the financial year.