In India there is, festivals like Navratri and Diwali fall in the month of October and November, followed by Christmas in December. These account for heavy sales for the retailers and value buying’s for the shoppers making accounting complex and time consuming.
To avoid the collision of both so as each of the activity gets efficient time and attention, December is not preferred as the month of closure of the financial year.
Filing returns is one of the areas where the fiscal and calendar year differ to concur; other areas include finalization of accounts. The government also presents its budget for April to March.
India is not the only country who follows this trend. Countries like Canada, United Kingdom (UK), New Zealand, Hong Kong and Japan also follow a similar trend.
While the exact reason remains unknown like the mystery of evolution of mankind, there is no denying the fact that most countries` financial year differ from the calendar year.