The financial executive and the accountant of a company had a disagreement over the interpretation of the terms "financial year" and "calendar…
CA Intermediate · Corporate and Other Laws · MTP · September 2025
The financial executive and the accountant of a company had a disagreement over the interpretation of the terms "financial year" and "calendar year." Referencing the provisions of the General Clauses Act, 1897, explain the correct meaning of the term "financial year." Additionally, distinguish it from the concept of "calendar year."
Suggested Answer and Working Notes:
As per section 3 (21) of the General Clauses Act, 1897, Financial year shall mean the year commencing on the first day of April. The term Year has been defined under section 3 (66) as a year reckoned according to the British calendar. Thus, as per General Clauses Act, Year means calendar year which starts from January to December. Difference between Financial Year and Calendar Year: Financial year starts from first day of April but Calendar Year starts from first day of January.
Topics: The General Clauses Act, 1897
Related Questions in this Topic
- 15. Ms. Farah is examining a Central Act which received the assent of the President on 10th January 2026, but the Act it...
- 14. Which of the following statements is/are correct with respect to the effect of repeal of an enactment under Section ...
- 14. Ritika pledged her shares in XYZ Ltd. as security for a loan. During a discussion, one of her friends argued that sh...
- 13. Bright Future Welfare Association, an unincorporated association of individuals, entered into a statutory arrangemen...
- The Community Development Incentives Act, 2010 provides certain tax benefits to organizations engaged in charitable and ...