Government of India constituted a high level committee under the chairman ship of Mr. Shankar Acharya to examine the desirability and feasibility of changing the financial year cycle from the present April-to – March cycle to January-to-December Cycle. Even though the report of the said committee is not published yet, the NITI Aayog (erstwhile planning Commission of India) in its concept paper authored by its Member Mr. Bibek Debroy favoured changing the financial year cycle.
India was following the present April-to March cycle for last 150 years, mainly to align with the financial cycle followed by the Britan. Adopting the January-to-December cycle as financial year necessitates amendments to various statutes and tax laws.
The cabinet of Madhya Pradesh State Government decided to adopt the January-to-December cycle as financial year and Madhay Pradesh is the first state in India to do so.