New Delhi, April 1 -- Every year, January 1 marks the start of a new calendar year. But for India's government, companies, taxpayers and financial system, the real reset comes three months later - on April 1.

That is when India's new financial year begins.

The April-to-March system is so deeply embedded in everyday economic life that most people accept it without question. Salaried employees plan their taxes around it, companies close their books on that basis, and the Union government frames its annual Budget on that basis.

As a new financial year begins today, let's find out why India's financial year begins on April 1 instead of January 1.

India's current financial year format has its roots in the British colonial system, which sha...