Why the financial year ends on 31st March in India ?

In India financial year starts on April 1 and ends on the March 31

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For over 150 years, the British ruled India and used the April–March accounting period. The similar approach was implemented in India after the East India Company began to administer.

India's fiscal year before 1867 was from May 1 to April 30

The British government adopted this in 1867 to coincide India's fiscal year with the British Empire's. British colonies like Canada and Hong Kong adhere to the April-March pattern.

The government can therefore predict  whether earnings will rise or decline  over a two-month period. As a result,  this is among the primary grounds  for  choosing April to March as  the financial year.

India is a agro-based country.The profit is based on an assumption of the reaping yields during the February and March months

Due to the numerous celebrations throughout November and December,these months are known as the festival season. As the inventory moves so quickly throughout this time, it could have been challenging to close the account books. which makes it difficult to close the books.

The Vaisakha holiday, Hindu New Year, has ties to this system. Beginning in March or April, the first month of the Hindu calendar will begin.Thus, this might be one of the reasons why the Indian government also considered shifting the beginning of the fiscal year there from April to March.