NICAI Update
CA Raj Chawla
Quote of the day:
1. WE Always Ensure OUR Hands & Spoons Are Clean Before Serving Food. Let's Ensure OUR Heart & Mind Are Absolutely Clean Before Offering OUR Words To Others.
2. Don't take every Challenge as a PROBLEM. Take every Problem as a CHALLENGE. Be Positive Always & Never Accept DEFEAT.
NICAI Update:
1. Starting April 1, 2026, several income tax forms like Form 26AS, Form 16, Form 13 and others will be renamed as the new Income Tax Act, 2025 will be effective from this date. Over time, names like Form 26AS, Form 16, and others became quite familiar to salaried employees, pensioners, senior citizens and others.
2. So, switching to the new form numbers under the Income-tax Act, 2025 might cause some initial hiccups, especially in the early days of the rollout. Some new names of tax forms The Income-tax Act, 2025 read with the Draft Income Tax Rules 2026 has updated the numbering of several statutory forms, with the corresponding changes notified under the Draft Income-tax Rules, 2026.
3. Karnataka High Court examined the validity of ex-parte assessment orders for assessment years 2018-19 and 2019-20 passed against the petitioner. The petitioner contended that it could not respond to the show cause notices because the notices were sent to the email ID of an employee who had left the company, and therefore it had no knowledge of the proceedings. The Revenue argued that the notices were sent to the email address furnished by the petitioner and that any internal employment changes could not invalidate service of notice.
4. India’s global capability centres (GCCs) continued to hire at scale in 2025 even as selective layoffs took place. Around 5,500–6,000 roles were cut across India’s GCC ecosystem in 2025, according to UnearthIQ data estimates. One large event at Technicolour alone accounted for more than 3,000 of those roles, while the remaining reductions were spread across roughly 20 GCCs. “Around 5,500 to 6,000 roles were laid off.
5. UDIN Directorate of the Institute of Chartered Accountants of India announced implementation of field-level validation across all sub-categories under Section 44AB (clauses a to e) at the time of UDIN generation under the “GST and Tax Audit” category. The Council, at its 442nd meeting in May 2025, had approved a ceiling of 60 tax audits per member, effective April 1, 2026, with corresponding restrictions on UDIN generation for Forms 3CA and 3CB categories.
6. In line with this decision, the UDIN portal will enforce the ceiling from April 1, 2026. Additionally, field-level validations have been introduced immediately to ensure compliance with statutory thresholds such as turnover limits, gross receipts criteria, cash transaction percentages, presumptive taxation conditions, and applicability of Sections 44AD, 44ADA, 44AE, 44BB, and 44BBB. UDIN generation will proceed only upon satisfying specified validation logic. Members have been advised to take note and ensure accurate data entry while generating UDINs.
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With best regards
CA (Dr) Raj Chawla
B.Com (Hons), FCA, FCS, FCMA, LLB
MIMA, DISA, MICA, Phd, ASA (Aust), CMP (USA)
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