Financial year closing: Today, on March 31, 2025, FY 2024-25 is to be closing. Then the new financial year will start from April 1. During this time an account of income and expenditure of taxpayers is prepared. March 31 is also the last day to file ITR. Now the question is coming in your mind as to why the closing of financial year takes place on 31 March itself? Let us tell you the reason behind this today.

Rules have been going on since the British era

Let us tell you that the tradition of starting the financial year from April 1 has been going on since the British era. It was convenient for him. Even after the country became independent, there was no change in it and the financial year time period has been kept in the Constitution till March-April. Regarding this tradition started in India in 1867, it is said that the British used to follow the Gregorian calendar of accounting and run according to April-March. During his reign in India, the same rule was followed.

The whole matter is related to rent

Another major reason behind this is also the crop cycle. We all know that the British used to collect rent from farmers in India. At that time, due to tax cultivation, the sowing and harvesting season of crops was taken into consideration. In India, wheat, gram, mustard and lentil crops are usually harvested in the month of March. The month of March is very important for harvesting rabi crops and then new crops are planted from April.

These are also reasons

Apart from this, some experts believe that the Hindu New Year starts from April 1 in India, so the financial year also starts from April 1. Now some people will also have a question in the mind that why not closing financial year in December? Actually, due to the month of December, people have a busy schedule due to the festive season, so there is no closing in this month.

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The new Financial Year 2025-26 is going to start in a few days, and many important Financial Changes are going to be implemented with it. These changes will directly affect your pocket. Whether it is the kitchen of the house, bank account, credit card holder, or investor, everyone will be affected by these changes. The rules of Check Payment have been changing from 1 April 2025, which will include new guidelines regarding payment processing and security. Apart from this, many important updates related to tax slabs, banking services, and investment schemes will also be revealed. Watch the video till the end for complete information about all these changes!