NFRA Update

[CA Raj Chawla]

Respected Members,

 
Quotes of the day;

 

1. The most delightful surprise in life is to suddenly recognize your own worth.. Value yourself a little more each day because you are very precious to the Divine.

 

2. ANGER is often the Weapon we use when we feel Attacked. Instead of HUMILITY is used as an Armour, LOVE is used as an accessory and a SMILE is used as Protection, All Wars will become OBSOLETE.

 

NFRA Update

 

1. The Income Tax Department these days uses a lot of data analytics and automated matching systems to compare the details you mention in your ITR with the information available in your Annual Information Statement (AIS), Form 26AS, TDS records and other financial databases. Even a small mismatch can attract scrutiny, delay your refund or attract an income tax notice.

2. AIS consolidates financial information reported by banks, employers, brokers, registrars and other institutions, making it a key compliance document during return processing. As the July ITR filing deadline approaches, taxpayers should carefully reconcile AIS with Form 26AS, Form 16, bank statements and investment records to avoid unnecessary scrutiny.

 

 

3. Rule 3 of the NFRA Rules, 2018 defines the classes of companies and bodies that shall be governed by the National Financial Reporting Authority (NFRA). The Statutory Auditors of these companies and bodies are mandated to file an annual return (Form NFRA-2) with NFRA as per Rule 5 the Rules. Filing of Form NFRA-2 is a mandatory regulatory requirement, and all auditors concerned are under obligation to ensure timely and accurate submission thereof in compliance with applicable provisions. The due date of filing Form NFRA-2 is 30th November next to the reporting year, i.e. for the Financial Statements as on 31.03.2024, audit report signed off in year 2024-25 (reporting year), the last date of filing Form NFRA-2 shall be 30.11.2025.

 

4. As per MCA Notification GSR 456(E) dated 17.06.2022, Rule 13 of the Rules, prescribes the punishment for non-compliance as follows: “Whoever contravenes any of the provisions of these rules shall be punishable with a fine not exceeding five thousand rupees, and where the contravention is a continuing one, with a further fine not exceeding five hundred rupees for every day after the first during which the contravention continues.

 

5. NFRA issued a Provisional List of 1314 Audit Firms Missing NFRA-2 Filings for 2024-2025. 

 

6. Central Board of Indirect Taxes & Customs (CBIC) issued Circular No. 25/2026-Customs dated 14-05-2026 to extend multiple trade facilitation measures granted earlier due to maritime disruptions from the closure of the Strait of Hormuz. 

 

7. 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

Ph. Off. 011-43581083

Cell: 98110-81083

rajch...@gmail.com