Use "date_views_filter_handler" filter handler for custom table field
I will not say this answer the question I asked but must say this answer worked the way I want.

Instead of using "date_views_filter_handler" I used "date_views_filter_handler_simple" and it just worked like a charm.Here is what I did while exposing my custom table to views.

  $data['jh_report']['date_of_purchase'] = array(
    'title' =&gt; t('Date of purchase'),
    'help' =&gt; t('Date of last purchase for current month'),
    'field' =&gt; array(
      'handler' =&gt; 'views_handler_field_date',
      'click sortable' =&gt; TRUE,
    ),
    'sort' =&gt; array(
      'handler' =&gt; 'views_handler_sort_date',
    ),
    'filter' =&gt; array(
      'handler' =&gt; 'date_views_filter_handler_simple',
    ),
  );