There is a fake new circulating in some section of media that the Financial Year has been extended. A notification issued by the Government of India on 30th March 2020 with respect to some other amendments done in the Indian Stamp Act is being misquoted. There is no extension of the Financial Year.

The Finance ministry said that a notification has been issued by the Department of Revenue, Ministry of Finance on 30th March, 2020 which relates to certain amendments to the Indian Stamp Act. It pertains 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 1st July 2020.

Stamp duty collection mechanism via exchanges postponed; no extension of the financial year. No extension of the financial year has been made. A government notification concerning amendments to the Indian Stamp Act establishes a mechanism for collection of stamp duty on securities market transactions through stock exchanges, clearing corporations authorised by stock exchanges, and depositories, and postpones the previously scheduled implementation date; this is a timing adjustment and does not alter the financial year or substantive tax liabilities.