NICAI Updates
CA Raj Chawla
Quotes of the day:
1. If you are DEPRESSED, you are living in the past. If you are ANXIOUS, you are living in the future. If you are at PEACE, you are living in the present. Future can be planned & lived with PEACE with Continuous efforts & positive mindset in Present.
2. To be most successful in life, always forget the problems that you faced in life, but never forget the lessons that those problems taught you.
NICAI Updates
1. Hyderabad Income Tax Appellate Tribunal (ITAT) has ruled that exemption under Sections 11 and 12 of the Income Tax Act cannot be denied merely because the audit report in Form 10B was not filed along with the return, as long as it was available to the Centralized Processing Centre (CPC) during processing .
2. This decision emphasizes that procedural compliance should not override substance, and the availability of the audit report is sufficient. The tribunal directed the Revenue to allow the exemption and process the return afresh in accordance with the law.
3. Key takeaways:
o Procedural vs. Mandatory*: The requirement to furnish the audit report "along with" the return is procedural, not mandatory.
o Substance over Form*: The audit report's availability is what matters, not its physical attachment to the return.
o Relief for Charitable Institutions*: Minor filing delays won't automatically lead to disallowance of exemption.
4. A new amendment has been made to the Income Tax Rules, 1962, which now requires banks to collect and report more detailed information on account holders and controlling individuals. Specifically, financial institutions must now provide additional information regarding reportable accounts. This includes the status of self-certification, details of joint accounts and the number of account holders, whether the accounts are classified as new or pre-existing, and the role that qualifies someone as a controlling person for entity accounts.
5. The Central Board of Direct Taxes has notified three new amendments to Income Tax Rules, 1962. CBDT Notification (No. 19/2026) dated March 5, 2026 said that three tax rules (Rule 114F, 114G and 114H) have been amended in line with Foreign Account Tax Compliance Act and Common Reporting Standard in India.
6. GST Composition Scheme for FY 2026-27 is live, and eligible businesses must file Form CMP-02 by *31 March 2026* to opt-in. Successful applicants will enjoy benefits from *1 April 2026* .
7. Benefits:*
- Simplified compliance
- Lower tax rates: 1% (traders/manufacturers), 5% (restaurants), 6% (service providers)
- Quarterly CMP-08 and annual GSTR-4 filings
8. Eligibility:*
- Turnover ≤ ₹1.5 crore (normal states), ₹75 lakh (special category states), ₹50 lakh (service providers)
- Restrictions: no inter-state supplies, no e-commerce sales, no notified goods manufacturing
9. Key Risks:*
- Missed deadline: continue under regular GST scheme
- ITC reversal required via Form ITC-03 by 30 May 2026
- *Filing Steps:*
1. Login to GST portal
2. Services → Registration → Application to Opt for Composition Levy
3. Fill Form CMP-02 and verify
4. Submit using OTP/EVC/DSC
5. Download acknowledgment
10. Follow the CA Raj Chawla NICAI Update Channel on WhatsApp to get the latest ICAI news, announcements, professional updates, and important notifications instantly Link :https://whatsapp.com/channel/0029Vb6q4i8LNSZwQ3bbxY2j
With best regards
CA (Dr) Raj Chawla
B.Com (Hons), FCA, FCS, FCMA, LLB
MIMA, DISA, MICA, Phd, ASA (Aust), CMP (USA)
712, New Delhi House
27,Barakhamba Road, New Delhi-110001
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