New Delhi [India], Mar 30 : Bar Council of Delhi (BCD) Chairman KC Mittal on Monday wrote to Prime Minister Narendra Modi seeking to extend the financial year, ending on March 31, 2020, till June 30, 2020, due to the lockdown imposed in the wake of coronavirus.
"In these unforeseen and extraordinary circumstances, it is very difficult to close the Financial Year on March 31, as, under Section 3 read with Section 2 (9) of Income Tax Act, the financial year would start on April 1 and would end on March 31 and income of the Financial Year/previous year would be subjected to tax at the rate prescribed in the Finance Act," Mittal said in the letter.
"We request that the previous year 2019-2020 relevant to the assessment year 2020-2021 be directed to be closed on 30.06.2020, instead of 31.03.2020 extending financial year to 30.06.2020," he added.
Mittal said that the economy has slowed down, people have lost their jobs, earnings have been lost and life has come to a standstill due to confinement at home.
"The social distancing and total lockdown are essential to be enforced, no matter the difficulties that may be unbearable," the BCD chairman said.
He also said that the BCD being a statutory body, under the Advocates Act, 1961, has the strength of over one lakh people, regulates the profession of law in Delhi and advocates, practice in all branches of law, including the Direct Taxes and therefore, matters relating to income tax, etc.
"The country is passing through an unprecedented and unforeseen phase of crisis and government has taken various steps to meet this challenge and take the country out of this grim situation, arisen due to COVID-19 spread," Mittal said.
He said that the decision will be in the interest of all the stakeholders, including the general public, tax practitioners including advocates, chartered accountants, and Revenue Authorities.
This comes as the country is under a 21-day lockdown to prevent the spread of coronavirus, which according to the Ministry of Health and Family Welfare has claimed the lives of 29 people and infected a total of 1071 people as on Monday morning.
( With inputs from ANI )