Tag: CHARTERED ACCOUNTANT

Chartered Accountant and the alleged mastermind behind a massive fake loan app scam, was arrested

In a significant breakthrough against inter-state cybercrime, Abhishek Agarwal, a Chartered Accountant and the alleged mastermind behind a massive fake loan app scam, was arrested by the cyber wing of Uttarakhand Police on Saturday at Delhi’s Indira Gandhi International (IGI) Airport.

Police sources revealed Agarwal was arrested under a Look Out Circular (LOC) issued against him. His arrest has exposed a sprawling network that allegedly siphoned off over Rs 750 crore through illicit transactions.

Investigations indicate Agarwal established a sophisticated web of approximately 35 to 40 shell companies to facilitate the fraud. Of these, 13 were registered in his own name, while 28 were in his wife’s name.

Several entities also listed Chinese nationals as co-directors, highlighting an international dimension to the racket. Suspicious transactions exceeding Rs 750 crore have been identified in accounts linked to these companies, which are now under detailed scrutiny.

The syndicate allegedly operated by luring unsuspecting individuals with promises of quick and easy loans through more than 15 fraudulent mobile applications, including ‘Insta Loan,’ ‘Maxi Loan,’ ‘KK Cash,’ ‘RupeeGo,’ and ‘Lendkar.

Once victims installed these apps, the fraudsters gained unauthorised access to their mobile devices, stealing sensitive personal data such as gallery photos, contacts, and other private information.

Police claimed this stolen data was then used for blackmail and intimidation. Victims were “subjected to threats of photo morphing and public shaming if they failed to pay exorbitant interest rates, penalties, and fines, leading to immense mental harassment and financial extortion.

Authorities revealed the genesis of this expansive fraud network dates back to 2019–20, when Agarwal allegedly facilitated the entry of Chinese nationals into India to kickstart the operation. He himself travelled to Shanghai and Shenzhen in 2019, indicating deep international ties.

This arrest follows previous significant actions in the same case. These include the apprehension of Ankur Dhingra, another alleged mastermind operating fake loan apps via Hector Lendkaro Pvt. Ltd., from Gurugram. In 2023, another resident of Gurugram was arrested, and a joint STF/Cyber team raided a call centre in Aurangabad, Maharashtra, recovering a ‘Simbox’ and other crucial evidence.

Upon his arrest, authorities recovered a mobile phone, a passport, Thai and Indian currency, a power bank, digital devices, rings, and an Apple Watch from Agarwal. He was wanted in connection with numerous cases across multiple states.

Speaking to The New Indian Express, STF’s Senior Superintendent of Police Navneet Singh said, “This ongoing investigation, initiated in December 2022, targets organised national-level fraud through various fake loan apps, aiming to curb the harassment and illegal extortion faced by citizens across India.”

Uttarakhand’s Director General of Police (DGP) Deepam Seth stated, “Uttarakhand is committed to making the state crime-free and will strive to curb cybercrime incidents more rigorously in the coming times.”

ICAI Overhauls Tax Audit Limits for CAs, New Rule to Kick in from April 2026

In a significant move to enhance audit quality and curb malpractices, the Institute of Chartered Accountants of India (ICAI) has announced a major overhaul of the tax audit limit for its members. Commencing from April 1, 2026, a Chartered Accountant (CA) will be permitted to conduct a maximum of 60 tax audits in a financial year, a rule that will now be strictly enforced on an individual basis.

The announcement was made by the current President of the ICAI, CA. Charanjot Singh Nanda, who emphasized that this measure is crucial for ensuring a fair distribution of audit work and elevating the standards of the profession. While a ceiling of 60 tax audits per CA already exists, the new regulation aims to close a loophole that has been prevalent in multi-partner CA firms.

Under the prevailing system, partners in a CA firm could collectively pool their individual limits, allowing a single partner to sign off on more than 60 tax audits by utilizing the unused limits of other partners. The revised rule will put an end to this practice.

The decision has been taken to strictly enforce the limit of 60 tax audits per individual member,” stated President Nanda. From the financial year 2026-27, a partner will not be able to undertake tax audits on behalf of another partner. This will ensure that the workload is evenly distributed and will prevent the concentration of audits in the hands of a few senior partners.

The ICAI believes that this reform will lead to a more thorough and diligent audit process, as it will prevent individual CAs from being overburdened with an excessive number of audits. This, in turn, is expected to improve the overall quality of financial reporting and increase transparency.

The move has been largely welcomed by the accounting fraternity, with many viewing it as a positive step towards improving professional ethics and providing more opportunities for younger and smaller practitioners. The ICAI is confident that this change will further strengthen the integrity and credibility of the Indian accounting profession.

This new directive is part of a series of reforms being undertaken by the ICAI to uphold the highest standards of the profession and to adapt to the evolving economic landscape. The two-year lead time before the rule comes into effect is intended to give CA firms and individual practitioners ample time to adjust their operational and business models to comply with the new regulations.

ICAI CA Intermediate and Final May 2025 Admit Card

The journey to become a Chartered Accountant (CA) is a dream for millions of students in India. This challenging yet respected professional curriculum is monitored by the Institute of Chartered Accountants of India (ICAI). As in the past years, students are currently drowning in their preparations for the intermediate and final exams for the May 2025 session. On April 17, 2025, the ICAIA announced the introduction of admission cards for CA intermediate and final exams. This announcement is crucial for all students who prepare for the next May’s exams, as it is a significant step in their preparation process.

Why is the ICAI Admit Card Important?
CA exams require a higher level of discipline and understanding compared to other educational evaluations. Admission card is required to participate in these exams, not only to attend the exam hall but also to identify the student, give details of the examination center, and provide all the critical information related to the test to participate in these exams.
Without an admit card, students will be rejected in the examination center, making it important to download it immediately. Making sure you have this document in advance is the key to a simple exam experience.

Exam Schedule for May 2025
ICAI had already announced the exam dates for the May 2025 session. Below you can see the group-wise dates of Intermediate and Final exams:

CA Final (New Scheme)

  • Group I – 2, 4, 6 May 2025
  • Group II – 8, 10, 13 May 2025

CA Intermediate (New Scheme)

  • Group I – 3, 5, 7 May 2025
  • Group II – 9, 11, 14 May 2025

How to Download the ICAI Admit Card?
The admit card download process is completely online and quite direct. Students can easily use their hall tickets through the eservices.icai.org portal, where ICAI has installed a user-friendly system to get and receive cards.
To recover your admit card, just go to the specified portal and follow the easy steps after logging in. This streamlined approach ensures that students can quickly and efficiently access their hall tickets without any hassle.

Step-by-step Process

  • Go to the ICAI website at CLICK HERE
  • Enter your User ID (Registration Number) and Password to log in
  • Navigate to the “Admit Card” section
  • Choose either the Intermediate or Final exam option
  • Download the admit card in PDF format and print it out


What All Details Are Present in the Admit Card?
The admit card is more than just a ticket for entry; it includes all the essential details related to your examination.

  • Full Name of Candidate
  • Registration Number
  • Photograph and Signature
  • Exam Centre and Address
  • Medium of Exam – Hindi/English)
  • Group I / Group II

How to Strategize for the Exam?
With the issuance of the admit card, the examination is around the corner. It is common for students to experience anxiety during this period, but by implementing an effective plan and managing your time wisely, you can excel in this exam. As the date of the exam is there, it is necessary to focus on your preparation. Embrace the opportunity to organize your study program and deal with any remaining subject; make sure you feel ready to be confident and successful.

Career Opportunities After Becoming a CA

After you have cleared the CA final exam, numerous career ways are available to you. This identity card is not just academic achievement; It also indicates the level of reliability and respect in the world of business.

Career opportunities

  • CFO or Finance Controller in Multinational Companies (MNCs)
  • Entrepreneurship – Starting your own CA firm
  • Government Sectors – Placements in PSU, RBI, CAG etc.
  • Overseas Opportunities – High-level Roles in UAE, UK, Singapore
  • Auditing and Tax Roles in Big 4 Companies

Upcoming Important Events

Event Date
CA Foundation Admit CardLast week of April, 2025
CA Foundation Exam15, 17, 19, 21 May 2025
CA Intermediate/Final resultMiddle of July, 2025

Attention Auditors! ICAI Drops a Big Hint

The esteemed Institute of Chartered Accountants of India (ICAI) has rolled out fresh guidelines for the presentation and disclosure of financial statements for Non-Corporate Entities (NCES), Not-for-Profit Organizations (NPOs), and LLPs.

While these guidelines are currently recommendatory in nature, make no mistake – this is the calm before the regulatory storm. The tone is clear: a uniform, corporate-style reporting format could soon become the new normal!

This move signals a major shift towards standardization and enhanced transparency so be prepared, stay ahead, -and don’t let this siren go unnoticed.

NCE formatsDownload

Chartered Accountants Must Retain Exclusive Rights to Conduct Tax Audits, Asserts ICAI President Nanda

Tax Audits Specialty of Chartered Accountants, Says ICAI President Nanda

Charanjot Singh Nanda, the newly appointed president of the Institute of Chartered Accountants of India (ICAI), emphasized on Wednesday the importance of keeping tax audits exclusive to chartered accountants, highlighting their specialized training for this role. His remarks came in response to recent proposals suggesting that other professionals be recognized as accountants under the new Income-Tax bill.

This shift, if implemented, would enable company secretaries and cost accountants to perform tax audits, a lucrative area currently reserved for chartered accountants (CAs).

“I value maintaining cordial relationships with other organizations, such as the Institute of Company Secretaries of India and the Institute of Cost Accountants of India. Nevertheless, tax audit expertise fundamentally belongs to chartered accountants,” Nanda stated during his inaugural press conference since assuming the presidency last week.

He pointed out, “While we study cost accountancy and compliance with the Companies Act as part of our curriculum, we do not assert expertise in those fields. Our primary training is in audits,” reinforcing the need for mutual respect for specialized roles.

Additionally, it is important to note that anyone who has passed the CA exams is permitted to conduct tax audits.

Anticipated Inputs on New Income-Tax Bill
Nanda revealed that a five-member committee established by the ICAI is diligently reviewing the new Income-Tax bill’s 536 sections. This committee will prepare a report for submission to the finance ministry and parliamentary select committee by March 10.

Focus on Work-Life Balance
In response to ongoing discussions about weekly work hours and differing views on work ethics, the ICAI plans to launch a committee dedicated to promoting work-life balance. This committee will collaborate with regional panels to raise awareness among members.

Relations with NFRA
Nanda expressed his intent to foster positive relationships with the National Financial Reporting Authority (NFRA), insisting that the perspectives of the ICAI should be respected. Tensions arose last year regarding NFRA’s efforts to align the country’s audit standards with international practices.

Strategic Priorities
Outlining the ICAI’s goals for the coming year, Nanda highlighted a drive to gain governmental backing for elevating Indian chartered accountants firms to an international level. The institute aims to strengthen its disciplinary framework to ensure prompt justice, endorse increased technological integration, enhance its global presence, focus on sustainability, and improve facilities for aspiring chartered accountants.

Disciplinary Actions
The ICAI has taken disciplinary measures against 241 chartered accountants for various professional misconducts during the 2024-25 period, with some cases related to tax audits concluded following Supreme Court rulings. Nanda noted that there were 119 penalties in the previous year and 91 the year before that, encompassing penalties and name removals (temporary and permanent, based on the severity of the misconduct).

From CA to Billionaire: The Remarkable Journey of this CA, who was once Amitabh Bachchan’s Chartered Accountant (CA)

Meet the billionaire who once served as Amitabh Bachchan’s Chartered Accountant (CA) and turned around a struggling pharma company, catapulting it to a market value of Rs 28,000 Crore.

India’s billionaire list has expanded dramatically over the last ten years, with names like Mukesh Ambani, Shiv Nadar, and Savitri Jindal capturing headlines. Today, we focus on an individual who not only navigated the business sphere alongside Bollywood icon Amitabh Bachchan but also rejuvenated a failing pharmaceutical firm. This businessman hails from a farming background in Rajasthan and has remarkably increased the company’s revenue from Rs 54 lakh to an incredible Rs 4,422 crore.

Premchand Godha, the Executive Chairman of Ipca Laboratories—a prominent Mumbai-based pharmaceutical company—boasts a net worth of $1.7 billion (Rs 14,435 crore), as reported by Forbes.

At 77 years of age, Godha leads a company now valued at Rs 28,000 crore. His early association with the Bachchan family as their CA provided him with invaluable experience in finance, which laid the groundwork for his epic success story.

Early Life

Born into a humble farming family in Rajasthan, Godha completed his commerce degree at the University of Rajasthan. Subsequently, he earned his Chartered Accountant certification from the Institute of Chartered Accountants of India, according to reports from DNA.

Beginning his professional career in 1971, he managed various financial affairs for the entire Bachchan family, including Bollywood’s legend, Amitabh Bachchan.

Business Ventures

In 1975, Godha invested in Ipca Laboratories alongside the Bachchan family when the company was facing severe financial challenges. His sharp business instincts and strategic vision revitalized Ipca, transforming it from a state of losses to substantial profits. Under his leadership, the firm’s revenue skyrocketed from Rs 54 lakh to Rs 4,422 crore over the years, as per The Economic Times. Notably, the Bachchan family’s exit from the company in 1999 marked a turning point, driven by their own financial struggles after Amitabh Bachchan’s brother, Ajitabh Bachchan, had chaired it during the 1990s, per DNA reports.

Godha has been a Director on the Board of Ipca Laboratories since October 31, 1975, and became Managing Director in March 1983. His tenure has seen Ipca flourish into a highly respected pharmaceutical firm, specializing in medications for diabetes, cardiovascular diseases, pain relief, and malaria, with a current market valuation of Rs 28,000 crore.

Net Worth

Over the years, Godha has established himself as a savvy first-generation entrepreneur, currently boasting a net worth of $1.7 billion (Rs 14,435 crore), thereby positioning him among the wealthiest individuals in India.

ICAI Ramps Up Disciplinary Measures Against Errant Chartered Accountants

ICAI Intensifies Disciplinary Measures Against Errant Chartered Accountants

In response to growing criticism regarding its disciplinary actions, the Institute of Chartered Accountants of India (ICAI) has significantly increased its measures against errant members.

Since the current disciplinary framework was established in 2007, a total of 2,652 chartered accountants have been found “prima facie guilty” of misconduct. However, recent efforts have led to a greater number of proceedings and actions being taken.

From April to August, the ICAI completed over 200 hearings during 71 panel sittings, resulting in the suspension of some chartered accountants’ memberships for periods ranging from one month to five years. Last financial year saw a record high of 366 sittings—nearly triple the number from 2022-23.

This year, the number of punishments handed out is at its peak in three years, although this surge can be attributed to the resolution of several cases following a Supreme Court ruling.

Of the 2,652 cases referred for inquiry, hearings have concluded in 2,284 cases, allowing the parties involved the opportunity to present their side before the Board of Discipline and the disciplinary committee,” a source stated.

Among the cases where hearings have concluded, 1,080 Chartered Accountants were found guilty of professional or other misconduct. Notably, 486 of these cases were referred by the government, with hearings completed in 387 of them, resulting in 165 members being held accountable.

Over the years, ICAI has faced scrutiny for its inadequate disciplinary measures, leading the government to withdraw some of its powers and establish the National Financial Reporting Authority (NFRA). This new body is responsible for investigating cases against auditors and audit firms associated with listed and large companies, sparking significant opposition from the Chartered Accountant community.

Nonetheless, a senior ICAI official defended the organization’s disciplinary record, asserting that the institute previously did not adequately publicize actions taken against its members, contributing to a negative perception.

BIG BREAKING! Is NFRA helping to further stenthen the monopoly of Big4 in India ?

There are concerns that the National Financial Reporting Authority (NFRA) may be strengthening the monopoly of the Big 4 accounting firms in India. A source within the Institute of Chartered Accountants of India (ICAI) indicated that the Forum of Firms, dominated by the Big 4, has established international norms that NFRA aims to implement in India. However, these new standards do not apply to Public Sector Undertakings (PSUs), Public Sector Banks (PSBs), and insurance companies. Consequently, key regulators like the RBI, CAG, and IRDA opposed the proposal, with only five out of eleven stakeholders supporting it. Nevertheless, NFRA intends to proceed with implementing these international standards. There are calls for the Prime Minister’s Office (PMO) to investigate why the RBI, CAG, and IRDA authorized standards that do not pertain to them and whether this undermines the vision of having ten major Indian accountancy firms.

CA Atul Modani

FCRA Compliance: Key Responsibilities for Chartered Accountants

The Foreign Contribution (Regulation) Act, 2010 (FCRA) is a crucial piece of legislation aimed at ensuring national security through the regulated handling of foreign contributions. According to this law, organizations must exercise careful and due diligence in managing foreign funds from the moment they are received until their eventual use. Chartered accountants play an essential role under FCRA by auditing the accounts of these organizations, certifying their accuracy, and submitting the necessary documents to the relevant government authorities for compliance. They are also tasked with providing accurate and thorough advice regarding the process of obtaining prior permission or registration under FCRA 2010, as well as guiding organizations that already have such permissions or registrations.

Chartered accountants must possess a deep understanding of the FCRA, 2010, and its amendments, along with the subsequent FCRA, 2011. Their expertise enables accounting professionals to assist organizations in adhering to legal requirements while managing and using foreign contributions in accordance with national security standards.

Role of Chartered Accountants

Chartered accountants offer comprehensive support to organizations seeking prior permission or registration under FCRA 2010, as well as those which are already registered. Their assistance encompasses a range of responsibilities, including but not limited to:

  • Verifying eligibility for accepting foreign contributions
  • Supporting the application process for registration or prior permission
  • Ensuring foreign contributions are received and spent from a designated bank account, distinct from domestic funds, in line with FCRA, 2010, and FCRR, 2011
  • Aiding in the upkeep of mandatory accounting records as stipulated by FCRA, 2010, and FCRR, 2011
  • Ensuring the preparation of Annual Returns adheres to FCRA, 2010, and FCRR, 2011, along with all amendments.

Core Responsibilities of Chartered Accountants

Chartered accountants play a pivotal role in ensuring compliance with the Foreign Contribution Regulation Act, 2010. Their key responsibilities include:

Conducting Comprehensive Audits

Auditing involves verifying the accuracy and compliance of financial statements and records with established regulations. Chartered accountants undertake various audit types, including statutory audits mandated by law, tax audits to verify tax compliance, and internal audits to enhance internal controls and processes.

Understanding Regulatory Frameworks

Chartered accountants must adhere to rigorous compliance standards as defined by relevant accounting and auditing bodies. This commitment encompasses upholding professional integrity, confidentiality, and transparency in client interactions.

Support and Guidance for NGOs

In addition to advising NGOs on financial matters, chartered accountants serve as intermediaries between businesses and clients, offering vital financial insights and mentorship to junior accountants regarding ethical practices.

The Statutory FC-4 Form

The FC-4 form is a mandatory submission for NGOs in India to the Ministry of Home Affairs under FCRA. While it may not pertain directly to all activities of chartered accountants, it is an important aspect of compliance.

Best Practices for Chartered Accountants

To ensure adherence to the Foreign Contribution (Regulation) Act, 2010, chartered accountants must follow best practices, which involve keeping abreast of relevant regulations, verifying eligibility, and ensuring proper documentation of foreign contributions. Here are three essential tips for chartered accountants:

Stay Informed

As a chartered accountant, continuous education about the latest laws, rules, and regulations is crucial. Engaging in certification courses, workshops, and webinars can significantly enhance professional skills and provide insights into industry advancements, fostering career growth.

Implement Rigorous Audit Processes

Thoroughly review all financial documentation for completeness and accuracy, including invoices, receipts, contracts, and supporting papers. To mitigate the risk of errors or fraud, establish strong internal controls, such as assigning different individuals to handle duties, requiring dual authorizations for significant transactions, and conducting timely reconciliations.

Empower Associations through Education

Help clients improve their financial literacy and tax planning capabilities, equipping them with the necessary tools to make informed financial decisions. This not only supports their individual business needs but also builds trust in the expertise provided.

Infosys Under Fire for Faulty Tax Filing Portal: Chartered Accountant’s Critique of Narayana Murthy’s 70-Hour Work Week

Infosys Under Fire for Faulty Tax Filing Portal: Chartered Accountant’s Critique of Narayana Murthy’s Work Week

As the deadline for filing income tax returns on July 31 approaches, Infosys faces renewed criticism over the malfunctioning tax filing portal developed for the Income Tax Department. Chartered accountants across India are grappling with long waiting times due to the subpar government portal. Addressing the issue, a chartered accountant took aim at Infosys co-founder and former CEO, Narayana Murthy.

Referencing Murthy’s remarks on India’s supposed 70-hour work week, the chartered accountant quipped, “Narayana Murthy, following your advice, tax professionals now work over 70 hours a week. We kindly request your Infosys team to allocate just one hour per week to ensure smooth operation of the Income Tax portal. Thank you in advance.”

This post soon raked in thousands of likes. Commenting on it, another person poked fun at Narayana Murthy and wrote, “70 hours also includes struggling with his IT support for 30 hours. He was wise enough to know this and informed the nation. A true nationalist who knows the strength of his development team.”

Someone else observed, “I had a lot of respect for Infosys but after seeing their income tax portal for the last 4 years, I lost all respect for this company. Even after 4 years can’t they provide a smooth user experience? Something seriously wrong somewhere which none of us are aware of.”

An user noted, “That’s the result of 70 hrs a week. Stress and other health issues kick in due to lack of sleep and social life. Productivity goes down the drain. Work-life balance is a thing. If you’re not able to meet your family commitments due to work, there’s an issue.”

Infosys was given the contract to develop the income tax filing portal by the Income Tax Department in 2021. Since then, many have criticised the portal for not working smoothly. In 2021, Deccan Herald reported that the Bombay Chartered Accountants Society wrote an open letter to Finance Minister Nirmala Sitharaman, informing her about 56 bugs on the portal. The Institute of Chartered Accountants of India also made a presentation before the Finance Minister and representatives from Infosys about the bugs.

ICAI Disciplinary Action Against CA for Professional Misconduct

The Institute of Chartered Accountants of India (ICAI) has taken disciplinary action against CA Radhakrishnan AR for professional misconduct related to the certification of documents for the incorporation of M/s Tencent Fintech Private Limited. The complaint, filed by the Deputy Registrar of Companies, Karnataka, alleges negligence in his duties while certifying the SPICe form for the company’s incorporation.

The allegations primarily focus on two issues:

  • The registered office address provided in the SPICe form did not correspond to any physical location upon verification.
  • The rental agreement submitted for the registered office was not executed by the property owner but by another company, M/s Brickspaces Pvt. Ltd.

The Disciplinary Committee found Radhakrishnan AR guilty of professional misconduct under Item (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949, which pertains to the lack of due diligence or gross negligence in the conduct of professional duties.

During the hearing, Radhakrishnan AR admitted to his mistake in not physically verifying the registered office address but argued that his involvement was limited to the incorporation process and that he had no knowledge of any fraudulent intent by the company promoters. He requested leniency, citing the procedural nature of the error.

However, the Committee concluded that Radhakrishnan AR’s failure to physically verify the registered office address and the rental agreement before certifying the SPICe form constituted gross negligence. Despite his argument that the errors were procedural and inconsequential, the Committee emphasized that as a certifying authority, Radhakrishnan AR was responsible for ensuring the accuracy of the information provided.

Based on the evidence presented, including Radhakrishnan AR’s own admission during the investigation, the Committee ordered the removal of his name from the Register of Members for a period of two months and imposed a fine of Rs. 20,000. Additionally, failure to pay the fine within 90 days would result in an extension of the removal from the Register for an additional 30 days.

Policemen beat up a CA: A Call for Justice and Accountability

A horrifying incident of police brutality has come to light in the Jaisinghpura area of Jaipur, where a senior citizen was mercilessly beaten up by the police in front of his son. The victim, identified as Chiranjilal (35), sustained serious injuries as a result of the police assault.

Chiranjilal, a resident of Jaisinghpura, works in a private company. The unfortunate altercation occurred when his wife, Dimple, arrived at her in-laws’ house with the police on Tuesday. With family members absent at home, Dimple attempted to forcefully enter the premises, prompting neighbors to alert Chiranjilal.

Upon Chiranjilal’s arrival, inquiring about the reason for the police presence and the attempt to break in, the situation took a violent turn as the police officers initiated the assault.

Even in the face of his son’s desperate attempts to intervene, the police officers remained relentless in their aggression, causing Chiranjilal severe harm. The officers proceeded to bring him to their vehicle while also arresting several of his family members. Shockingly, when female family members attempted to intervene, they were met with physical aggression from a policewoman.

As a result of the deplorable assault, Chiranjilal sustained a serious injury to his hand and his eye swelled. The Deputy Commissioner of Police (West), Amit Kumar, has ordered a thorough investigation into this distressing incident, emphasizing the gravity of the situation and denouncing the wrongful actions of the police officers.

The orders for an extensive departmental inquiry reflect the urgency to address this appalling abuse of power. The authorities must ensure that those responsible for this reprehensible act are held accountable for their actions.

This incident serves as a stark reminder of the importance of upholding the principles of justice and fairness, even within the custodians of law and order. It is essential that those entrusted with upholding the law adhere to the highest standards of ethics and conduct, treating citizens with the dignity and respect they deserve.

The aftermath of this vicious assault underlines the urgent need for accountability and reform within law enforcement agencies. The collective hope is for justice to prevail and for steps to be taken to prevent such egregious abuses from recurring in the future.

Is Chartered Accountants (CA) Responsible for Filing Income Tax Returns?

Filing Income Tax Returns (ITRs) is a fundamental responsibility for every taxpayer. However, there’s a common misconception that only Chartered Accountants (CAs) are responsible for this process. In reality, the responsibility is shared between the taxpayer and the CA. This article aims to clarify this misconception and shed light on the roles and responsibilities of both parties in the ITR filing process. Understanding the collaborative effort needed for accurate and compliant tax filing is essential for a smooth tax-filing experience.

Understanding the ITR Filing Process

The ITR filing process involves assessing your income and tax liability for a specific financial year and reporting it to the tax authorities. The process necessitates providing accurate details regarding your sources of income, deductions, exemptions, and tax payments made during the year. Whether you’re a salaried individual, a business owner, or a professional, you are required to file your ITR annually.

Misconception: Only CAs File ITRs

One prevalent misconception is that only CAs are responsible for filing ITRs. While CAs can assist in the process, the ultimate responsibility lies with the taxpayer. Individuals, businesses, and entities must actively engage in assessing their finances and providing accurate information for the filing.

Roles and Responsibilities of Taxpayers – CA For ITR Filing

Maintaining Accurate Financial Records

Maintaining accurate financial records is the cornerstone of responsible financial management. Taxpayers need to keep meticulous records of all financial transactions and activities throughout the financial year. This includes documenting income from various sources such as salary, business, investments, or any other sources. Additionally, tracking expenses, investments, deductions claimed, and tax payments made is crucial. Accurate financial records serve as the foundation for preparing and filing an accurate Income Tax Return (ITR).

Understanding Tax Laws and Regulations

Understanding tax laws and regulations that are relevant to your financial situation is essential for compliant tax filing. Tax laws can be complex and often undergo changes, so it’s crucial for taxpayers to stay informed and updated. This understanding helps ensure that taxpayers are compliant with the applicable tax laws, claim rightful deductions, and report their income accurately. It empowers taxpayers to fulfill their tax obligations and avoid legal complications due to non-compliance.

Filing ITR Timely and Accurately

Filing the Income Tax Return (ITR) accurately and within the specified due dates is a primary responsibility of taxpayers. Timely and accurate filing ensures compliance with tax regulations and helps in fulfilling the legal requirement of reporting your income and taxes to the tax authorities. Delays or inaccuracies in filing can lead to penalties and legal complications, highlighting the importance of adhering to the deadlines and providing precise and complete information in the ITR.

Choosing the Appropriate ITR Form

Taxpayers must carefully choose the correct ITR form based on their income sources and financial situation. The Income Tax Department provides various ITR forms catering to different categories of taxpayers and sources of income. Each form has specific instructions and requirements, so selecting the appropriate form is crucial for accurate reporting. Failing to choose the correct form can lead to discrepancies in the reported income, deductions, and tax liability, potentially resulting in legal issues.

Roles and Responsibilities of Chartered Accountants – CA For ITR Filing

Guidance and Assistance:

CAs can provide guidance and assistance to taxpayers in understanding tax laws, preparing financial statements, and navigating the ITR filing process.

Ensuring Compliance:

CAs ensure that the ITR is prepared in compliance with the applicable tax laws and regulations. They can help optimize tax liability while ensuring legal compliance.

Reviewing and Submitting ITR

CAs can review the ITR before submission, checking for accuracy and completeness. They handle the submission process and any subsequent communication with tax authorities.

Importance of Accurate Information to the CA

If a taxpayer seeks the assistance of a CA for ITR filing, providing accurate and complete information is paramount. The accuracy of the ITR filing heavily relies on the accuracy of the information provided to the CA. Misleading or incomplete information can lead to errors in the ITR, potential penalties, and unnecessary legal issues.

In conclusion, filing Income Tax Returns is a shared responsibility between the taxpayer and the Chartered Accountant. While CAs can offer valuable assistance and expertise, taxpayers are ultimately accountable for the accuracy and timeliness of their ITR filing. Understanding the roles and responsibilities of both parties is essential for a seamless tax-filing process. Seeking professional assistance from a CA is beneficial, but ensuring accurate information and active participation from the taxpayer is crucial for compliant and accurate ITR filing.

Man Arrested for Allegedly Cheating Chartered Accountants of Rs 2.48 Crore in Hyderabad

An individual named Srinath Rathi, aged 29 and residing in Kacheguda, Hyderabad, was arrested by the Detective Department’s Economic Offences Wing (EOW) for allegedly cheating Chartered Accountants of Rs 2.48 crore.

Srinath collected money from the Chartered Accountants under various pretenses and failed to repay them, resulting in charges of cheating. After being produced before the court, he was remanded in judicial custody.

Supreme Court Upholds Chartered Accountants’ Rule Allowing Board to Refer Misconduct Cases to Disciplinary Committee

Article Summary The Supreme Court upheld a rule allowing the Board of Discipline to refer complaints for misconduct to the Disciplinary Committee, even if the Director’s opinion differs. This decision was made in the case of Naresh Chandra Agrawal v. The Institute of Chartered Accountants of India and Others. The appellant’s challenge to Rule 9(3)(b) of the 2007 Rules was dismissed by the Delhi High Court and the Supreme Court. The Court found that the impugned rule aligns with the purpose of framing the Chapter on ‘Misconduct’ under the Act. The appellant was a member of an audit firm involved in a case of suspicious transactions at a bank. The Director (Discipline) initially concluded that the appellant was not guilty of professional misconduct. However, the Board of Discipline disagreed and referred the matter to the Disciplinary Committee. The appellant argued that the Board exceeded its authority, but the Court agreed with the respondents, stating that the impugned Rule falls within the scope of the general delegation of power under Section 29A(1) of the Act.

CA’s Misconduct : Supreme Court Upholds Chartered Accountants’ Rule That Allows Board To Refer Matter To Disciplinary Committee

In a significant development, the Supreme Court on Thursday (February 8) dispelled a challenge to a rule under Chartered Accountants’ (Procedure of Investigation of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, which allows the Board of Discipline to refer a complaint for misconduct to the Disciplinary Committee despite opinion of the Director (Discipline) that the person/firm accused of misconduct is not guilty, as well as to advise the Director to investigate further.

“…we have not the slightest hesitation to conclude that the impugned rule is completely in sync with the object and purpose of framing the Chapter on ‘Misconduct’ under the Act”, said the Bench of Justices PS Narasimha and Aravind Kumar.

The Court was hearing an appeal against a Delhi High Court order that dismissed the appellant’s challenge to Rule 9(3)(b) of the 2007 Rules as ultra vires of Section 21A (4) of the Chartered Accountants’ (Amendment) Act, 2006 [“Act”].

The facts of the case can be summarized thus: the appellant was member of a firm which was given audit work wrt the complainant-Bank. Some suspicious transactions involving large sums of money took place in the Bank’s branch, but they were not flagged by the audit firm.

As such, the complainant registered a complaint with Director (Discipline), who called for the audit firm to disclose the name of the person charged with auditing and preparing report wrt the subject transaction. Eventually, the Director came to a prima facie conclusion that the appellant was not guilty of any professional or other misconduct within the meaning of clause (7), (8) and (9) of Part 1 of the Second Schedule to the Act.

On the Director’s opinion being placed before it, the Board of Discipline disagreed and decided to refer the matter to the Disciplinary Committee for further action. Aggrieved by the action of the Board, the appellant approached the High Court. When the High Court dismissed his petition, he moved the top Court.

The appellant’s case was that the Board ought not to have assumed the role of the Director and referred the matter to the Disciplinary Committee. It was contended that there was no substantive basis in the Act for the Board’s action and the impugned Rule [ie Rule 9(3)(b) of 2007 Rules], being a delegated legislation, could not provide for an action not contemplated under the Act.

After perusing the material on record, the court agreed with the contention of the respondents that accepting the appellant’s argument would result in Director having greater powers than the Board (even though it acts as the Board’s Secretary), as the Board would not be able to override the prima facie opinion of the Director.

“The ‘prima facie’ opinion of the Director will become nothing but a final opinion if the Board will have no option except to direct the Director (Discipline) to further investigate the matter. The Section is silent as to what would happen in a situation where the Director (Discipline) on further investigation concludes in accordance with his preliminary assessment”. It further opined that the Act prohibits professional misconduct, with an aim to uphold honesty, integrity, and professionalism in the practice of chartered accountancy. As such, the impugned Rule fell within the scope of Section 29A(1) of the Act, under which the Central government is empowered to make Rules for carrying out purposes of the Act.

“…even if we accept, for the sake of argument, that Rule 9(3) cannot be saved under Section 29A(2)(c), as it directly relates to furthering the purposes of the Act in ensuring that a genuine complaint of professional misconduct against the member is not wrongly thrown out at the very threshold, it can be easily concluded that the impugned Rule falls within the scope of the general delegation of power under Section 29A(1).”

Case Title: NARESH CHANDRA AGRAWAL v. THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA AND OTHERS, CIVIL APPEAL No.4672 OF 2012

Citation : 2024 LiveLaw (SC) 101

Source Live law

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Chartered Accountant Granted Bail in Rs 20,000 Crore PMLA Case Tied to Chinese Phone Maker Vivo

CA gets bail in 20,000cr PMLA case tied to Vivo

A Delhi court has granted bail to chartered accountant Nitin Garg, one of the four main accused persons in Rs 20,000 crore money laundering case linked to Chinese phone maker Vivo.

“Prima facie, there is no allegation against the applicant that he has done something which was beyond his scope of profession i.e. he indulged in activities which are totally unconnected with Chartered Accountancy. It has repeatedly been held that stage of bail cannot convert into a mini trial,” said the court.

Changes in Chartered Accountancy 2024 Exams: New Pattern and Salient Features

Chartered Accountancy 2024 Exams To Be Held In New Pattern, Check Details: The Institute of Chartered Accountants of India (ICAI) has announced the examination schedule for the CA Foundation, Intermediate and Final May exams 2024. The CA Foundation course exams are scheduled for June 20, 22, 24, and 26. The Intermediate Group 1 exams will take place on May 3, 5, and 7, while Group 2 exams are set for May 9, 11, and 13. The CA Final exams will be held on May 2, 4, and 6 for Group 1, and on May 8, 10, and 12 for Group 2.

ICAI has formulated the New Scheme of Education and Training in line with International Education Standards and National Education Policy, 2020 (NEP). This year ICAI will conduct the first Foundation, Intermediate and Final Examination under New Scheme

The new scheme has been introduced after considering the inputs from various stakeholders. The New Scheme of Education and Training has been notified in the Gazette of India on June 22, 2023 and launched on July 1, 2023. 

As per information shared on the official website of ICAI, “The curriculum of the New Scheme of Education and Training has been designed to build global ready professionals by equipping aspiring Chartered Accountants with the requisite competencies. The course will inculcate enriched learning methodologies, cogent and holistic skill assessment and effective and focussed practical training, industry orientation and multi-disciplinary approach.”

The salient features of the New Scheme are-

The following special features are being incorporated in the New Scheme to enhance the professional competence of aspiring Chartered Accountants.   

Seamless and focused practical training for two years. This industrial training period would be examination-free and will be conducted for 9 to 12 months. The training can also be opted for in the last leg of the practical training period.  

Technology enabled learning through self-paced online modules, which provide necessary industry orientation. 

Mandatory paper on multi-disciplinary case study with strategic management at the final level is conducted. The paper assess the integrated application of professional knowledge in different subject areas combined with the skills acquired during practical training. This paper is open book and case study based to assess the higher order thinking skills and overall professional competence of aspiring chartered accountants.  

Assessment is conducted by way of case scenario/study based MCQs for 30 marks in every subject at the Intermediate and Final levels to hone the analytical skills of aspiring Chartered Accountants.  

The Final level curriculum is blended with education in ethics and information technology by including core subjects related to these. 

Implementation of international curriculum in line with the Government’s objective of internationalisation of higher education.

BDO India Hiring CA/CA Inter For Manager – Record to Report (RTR) Position

BDO India Hiring CA/CA Inter For Manager – Record to Report (RTR) (Mode: Hybrid,Regular,Work from home,Client Location)

BDO India hiring Chartered Accountant/Semi-Qualified Chartered Accountant with Minimum 6 Years and above for the Profile of Manager – Record to Report (RTR).Mode: Hybrid / Regular / Work from home / Client Location (Candidate should be flexible),Timing: 02PM to 12AM (UK Shift).

Roles and Responsibilities:
1.   General Ledger accounting for the journal entries required to be passed.
2.   Preparation, review and posting of the journal entries in line with the Everise accounting guidelines.
3.   Entries are required to be passed in compliance with the Accounting Standard requirement in the Netsuite.
4.   Ensuring compliance with the chart of accounts and cost centers in the financial ledgers.
5.   Fixed Assets Accounting – ensuring correct and timely capitalization of Everise assets.
6.   Correct booking of prepaid expenses and amortization every month.
7.   Ensuring Revenue Recognition entries at the end of every month.
8.   General ledger scrutiny of all the entries posted in the system to ensure financial hygiene.
9.   Review of month end provision entries for completeness, accuracy and correctness and posting the same in the ERP system.
10. Ensuring back-up documentation of all the JVs / entries posted in the ERP system.
11. Inter-company accounting and reconciliations.
12. Month-end reinstatement of foreign receivables and payables.
13. Leading the management books closing month-end process as per the process and within the timelines established.
14. Monthly P&L, Balance Sheet and Cash Flow statement preparation and review with the Management.
15. Response / Clarification to the stakeholders for any accounting related queries.
16. Reversal of all the reversible JVs at the beginning of next month. Keeping track and documentation of all such journals.
17. Continuous review of Cost Centres against the expenses incurred and proposing for creating of additional Cost Centres, if any, as may be required to ensure correct accounting of expenses.
18. Monthly GL scrutiny and corrections
Please feel free to share your resume on sameekshasingh@bdo.in.

Four Arrested for Kidnapping Chartered Accountant in Multi-Crore Scam Recovery Attempt

Four victims of multi-crore scam abduct CA to recover lost money: Police arrest four individuals who kidnapped a chartered accountant in an attempt to recover money lost in a Ponzi scheme. The accountant had convinced acquaintances and relatives to invest in the fraudulent company. The kidnappers demanded a ransom of ₹5 crore ($710,000). Two of the accused were found with the victim after a five-day search, while the other two were apprehended separately. The four are now in police custody.

Strap: A police team arrests quartet after five days of search and rescues CA, who was attached to the fraud company

It was like a copy of the script from a highly rated crime show on television. From staking out their target’s house for days to keeping tabs on his daily schedule for a month, they did pull off an abduction and left no trail for police to swoop down on them.

However, the long arm of the law eventually caught up with them.

Last Wednesday, four white-collar job holders, who, in their last-ditch effort to recover the hard-earned money they had lost in a Ponzi scheme two years ago, kidnapped the only person they got their hands on – the charted accountant (CA), outside his office in Chandivali.

According to the police, Bhushan Arora was associated with the firm, the alleged perpetrator of the fraud. The quartet made three ransom calls to his wife Megha and demanded ₹5 crore in ransom.

“During investigation, we got to know that Arora had convinced many of his acquaintances and relatives into investing in Divine Power Group. All of them faced big losses in the stock market due to this. Even the person who made the ransom calls had told the family that he and his accomplices had lost money because of Arora,” said Datta Nalawade, deputy commissioner of police, zone 10.

Can AI Replace Chartered Accountants in the Future?

Summary: The recent CA Final results have prompted discussions about the future of Chartered Accountants (CAs) in the face of advancing AI and machine learning technologies. While AI is expected to enhance audit quality and increase transaction scrutiny, it poses a potential threat to process-driven aspects of the profession. Experts emphasize the importance of human decision-making and emotional intelligence in business, highlighting the irreplaceable value of a CA’s signature and the unique cognitive skills required in auditing. Despite the potential impact of technology on compliance roles, there are opportunities for the profession to elevate its role and provide enhanced services. The collaboration between ICAI and IIM-Ahmedabad aims to equip CAs with the necessary skills to adapt to the evolving landscape.

Can AI replace CA?

Hello connections!
Hope you’re all doing well.

As we all know, ICAI has recently rolled out the CA Final results and we have many newly Qualified Chartered Accountants. My heartfelt Congratulations to all of you there. Cheers to your success, and welcome to the next big chapter of your life. So, I feel this is the most appropriate time to put this thing out here.
We all have been hearing “Ek baar CA ban jao, fir toh life set hai” but here comes the most daunting question for all the Chartered Accountants (CAs) – “Can we be replaced in the future?”

In today’s dynamic and challenging world, the answer to this question cannot be undecorated.

CAs play a vital role in the finance and accounting industry. We are responsible for ensuring the financial integrity of organisations, auditing financial statements, filing corporate tax returns, and providing financial advising.

However in today’s zestful world, the expectations from CAs are increasing, and the traditional methods of accounting and finance are becoming outdated. In this context, machine learning (ML) and artificial intelligence (AI) are playing a significant role in helping CAs meet these challenges.

Artificial Intelligence will help us deliver high quality audits as well as increase the number of transactions being looked at. At the same time, we also need to upskill to counter the threat of automation replacing the process-driven parts of their jobs.

“If there is a good AI system, then there is so much one can look at in terms of transactions. AI will report back to you in terms of any deviations, red flags… and will play a huge role in assisting Chartered Accountants to deliver high quality audit”, said the ICAI President Aniket Sunil Talati.

David Haveron, an expert in A.I. with PwC’s emerging technology practice in Dubai,
explained that there is “an immense opportunity” at a global and at a regional level, to start understanding how A.I. is going to be used in businesses to help us make better decisions.

There are many good reasons for a business to adopt the technology, such as staying competitive in a market, innovating with new products, or driving internal efficiencies in a company.

Sabbir Ahmed, Member Council at the Institute of Chartered Accountants Bangladesh, said human decision making and relationships remain important for business, even when tools like A.I. augment their ability to gain insights.
“Machines cannot drive change – they will give you the prediction but it’s the human being that will drive the change,” he said. “One area where A.I. needs to match with is EI: emotional intelligence. Human beings cannot be replaced by machines. That human element and human empathy is core to trust,” he said.

Let us take an example of Projection Reports.
Any AI can make a good project report for a term loan. Rather, AI can make an amazing detailed feasibility report as well.

However, banks do not accept project reports, unless they are attested by CAs. That is how valuable a signature of the CA is.

Another distinguishing quality of a CA is-

Application of mind and experience during an audit : It is not easy for AI to conduct audits ( not vouching) as it requires opinions and not just mere calculation checks. Also it requires experience to understand which entry is fake and which one is bona-fide. This is another thing, which any AI cannot do.

CEO of The Institute of Chartered Accountants of England and Wales, Michael Izza, said that the accountancy profession has a lot to think about. “There is no doubt that technology will have a significant impact on process-orientated, or compliance-orientated roles, where technology will be able to do it better, more accurately and more quickly. At the same time it offers huge opportunities for the profession to move up the value chain, and to play a role as data guardians in a world where we are drowning in data and starving in insight.”

As the world becomes more complex and dynamic, we as CAs need to embrace these technologies to stay ahead of the curve and provide the best possible service to their clients.

ICAI has now put icing on the cake by collaborating with IIM-Ahmedabad to prepare a vision document. A Memorandum of Understanding (MoU) has been signed between the ICAI and IIM-A to establish mutual co-operation between both institutes for offering and co-hosting open enrollment and customised training programmes exclusively for CAs.

Big Breaking News! Penalties and Debarments: NFRA’s Action Against Chartered Accountants

The National Financial Regulatory Authority (NFRA) has slapped a penalty of Rs 20 lakh and a ten-year debarment on a chartered accountant for professional misconduct, failure to exercise due diligence, and gross negligence in the Statutory Audit of Seya Industries Limited on Tuesday. In another matter, NFRA imposed a penalty of Rs three lakhs on another CA and debarred him for three years for professional misconduct in the audit of SRS Infrastructure.

NFRA had recently imposed a penalty of Rs 50 lakh on a CA for professional misconduct which led to business service provider Quess Corp claiming undue income tax deduction of almost Rs 971 crore over three years.

NFRA took up a suo motu investigation into the role of the statutory auditors of Seya Industries Limited after receipt of a letter dated March 28, 2023, from SEBI about non-compliance with the accounting standards and misreporting in the financial statements by the company, and non-cooperation by the auditor.

SEBI had observed that the company had inflated its purchase and sales in the FYs 2018-19 to 2020-21, did not disclose related party relationships and their transactions, and siphoned off funds through undisclosed related parties, NFRA said. SEBI also noted that the company did not provide for interest costs on NPA loan.

Pointing out the lapses in the audit of SRS Infrastructure, NFRA said that the auditor failed to evaluate management’s assessment of the entity’s ability to continue as a going concern and also to obtain appropriate evidence related to revenue recognition.

Chartered accountants may soon have to file tax returns for robots

More work for chartered accountants as they soon may have to file more tax returns as robots are likely to be taxed in the future. Pinakin Desai, a practising chartered accountant, mentioned at the Reimagine Summit organized by the Bombay Chartered Accountants’ Society that within two years, there could be a law requiring robots to file tax returns.

During the summit, Advocate Nishith Desai, founder of Nishith Desai & Co., discussed whether robots should be considered a separate entity just like humans, and even citizenship is being offered to robots in some countries.

He further added that robots in India will also be taxed, which would result in more work for chartered accountants. However, the industry is uncertain about whether CAs would be excused if an artificial intelligence tool is used to file tax returns and errors are introduced in the tax return. Currently, due diligence must be thorough when submitting tax returns, as there is no escape from tax litigation in case technological tools introduce errors.

The provisions of Section 273B of the Income Tax Act, 1961, state that penalty should not be imposed in certain cases, but this only applies if sufficient due diligence has been done,” explains Nishit Desai. However, tax professionals are facing the dilemma of whether AI-based evidence will be presented during tax litigations and whether legal courts will only rely on past cases to make their decisions.

This is especially challenging since the Income Tax Department now uses data collected from various sources, including banks, mutual funds, customs, property registrars, social media, and satellite imagery. For instance, during a tax dispute over agricultural income, the Income Tax Department used satellite images of the taxpayer’s barren land from the last five years to question how agricultural income was earned from that land, as Pinakin Desai pointed out.

Apart from satellite imagery, the Income Tax Department also uses technological tools for its pre-filled returns. However, if errors are made while using government-based software, taxpayers can still be protected, according to Shariq Contractor, a partner at CNK & Associates. Nevertheless, it is essential to be cautious and double-check the returns, whether the software is government-based or private software used by a chartered accountant.

Another aspect of AI and technology-led development is the need to safeguard against legal disputes. Auditors should carefully analyze insurance contracts to protect themselves from legal battles that may arise due to the use of AI or unintended technological mistakes.

For example, a US lawyer lost his bar license for quoting a non-existent judgment. The lawyer had used AI-based tools during research, which provided results of cases that were never filed in court. Professional indemnity insurance cover for Chartered Accountancy firms should provide extensive protection against litigations related to AI and different jurisdictions,” suggests Nishit Desai.

Chartered Accountant Slapped with Rs 50 Lakh Penalty for Professional Misconduct

The National Financial Reporting Authority (NFRA) has slapped a penalty of Rs 50 lakh, one of the highest in recent years, on a chartered accountant for professional misconduct that enabled business services provider Quess Corp to claim undue income tax deduction of almost Rs 971 crore over three years.

In an order released on Thursday, the audit regulator said the report and the certification by chartered account (CA) Pawan Jain, partner at M/s Kumar Jain & Associates, helped Quess Corp claim the income tax deduction of Rs 113.86 crore in FY19, Rs.428.80 crore in FY20 and Rs.428.16 crore in FY21.

“Thus, the work of the CA has major implications for revenue (to the government),” the NFRA said.

The deductions were claimed under section 80 JJAA of the Income Tax Act, 1961. This section allows eligible enterprises a deduction of 30% on increased employee expenses for three assessment years in a row.

In the order the regulator said: “We find that CA Pawan Jain failed to exercise due diligence in the conduct of professional duties while certifying the information in form 10 DA based on examination of the relevant records.”

“It has been proved that before issuing the reports, the CA did not obtain sufficient appropriate evidence with regard to compliance of conditions stipulated in Section 80 JJAA for claiming deduction in respect of new employees,” it added.

The NFRA order stated that the Director General of Income Tax (Investigation) in Bengaluru had, in August 2022, shared information about the claims of the income tax deductions totalling Rs 1135.41 crore by Quess based on the relevant certifications by two chartered accountants for five years through FY21.

Subsequently, NFRA looked into the professional conduct of the chartered accountants and their firms involved in the certifications that formed the basis of the income tax deduction claims.

ICAI Students’ Journal – The Chartered Accountant Student – October 2023 Issue
To Access the Journal

ICAI Students’ Journal – The Chartered Accountant Student – October 2023 Issue To Access the Journal Please visit

INSIDE

03 President’s Communication

  1. Vice-President’s Communication

05 Chairman’s Communication

06 Chairman SSEB (Board of Studies-Operations) Communication

07 CA Final: Advanced Auditing and Professional Ethics

17 CA Intermediate: Auditing and Assurance

24 CA Foundation: Business and Commercial Knowledge

27 CA Final: Financial Reporting

32 Economic update

33 List of Educational Institutions in Partnership with ICAI via MoUs

36 Crossword

studentjournal-oct2023Download

Former ICAI Chairman, C. Murali Krishna, raises concern on arrests of some chartered accountants by investigative agencies

Former ICAI Chairman, C. Murali Krishna, raises concern on arrests of some chartered accountants by investigative agencies for alleged irregularities. He says hasty arrests could be avoided if protocols are followed

CAs who conduct the audit of Public Sector Banks (PSBs) are worried about the new laissez-faire attitude of the RBI

Chartered accountants (CAs) who conduct the audit of Public Sector Banks (PSBs) are worried about the new laissez-faire attitude of the Reserve Bank of India (RBI).

The RBI has drastically reduced the percentage of business of bank branches that can be audited for the current financial year. Not only this, but from the next financial year, the RBI has left it to the PSBs to decide the percentage of the business they want to get audited.

CAs say this will severely impact their ability to properly assess the situation and highlight the risks.

RBI circular details
A recent circular from the RBI declared that the statutory branch audit of the PSBs should be carried out to cover only 70 per cent of the funded and non-funded business for 2022-2023 and that from 2023-2024 each bank can decide on its own the percentage of business be audited.

Earlier, the audit coverage of any PSB branch was 90 per cent, which would practically ensure the auditors got nearly the whole picture.

In combination with the rule, the RBI has also specified that the PSB board can decide on the selection of branches for audit purposes, which would effectively mean that 100 per cent of branches will not be covered under the audit.

PSBs have a total network of 84,000 branches in India, and the RBI has said that each auditor can cover only two branches.

“For FY23, statutory branch audit of PSBs shall be carried out so as to cover a minimum of 70 per cent of all funded and 70 per cent of all non-funded credit exposures of the bank. For FY24 and onwards, the PSBs are being given the discretion to determine business coverage under statutory branch audit, as per their board approved policy, after considering bank-specific aspects relating to business and financial risks,” said the RBI circular.

Expert’s take

Rajesh Sharma, the former Central Council member of the Institute of Chartered Accountants of India said, “We all are witness to what has happened in the past to many small banks in India. Take the recent incident of the Silicon Valley Bank in the US.”

Sharma added, “Banking crises emerge when their balance sheets don’t show a clear picture. Reducing the business coverage for audit purposes can be dangerous as the red flags can escape scrutiny. Earlier, the RBI took the rural branches of PSBs below ₹20 crore business off the audit list and is now reducing the scope of audit over the business. These are bad precedents, which will expose several banks to a risk.” .

Also, there could be some chaos among the PSBs and audit firms as the RBI has said that any audit entity which is preferred by multiple banks is allocated only to one bank on a first-come first-serve basis.

Hence, prior to the appointment or reappointment of auditors, each PSB has to upload the names of the entities they choose, on RBI’s audit allocation system.

Chartered accountants day. I congratulate all the CAs in the country in advance

chartered accountants day. I congratulate all the CAs in the country in advance.

ICAI: Draft Of Regulations Further To Amend Chartered Accountants Regulations 1988

On 2nd June 2022, the ICAI has notified Chartered Accountants  (2nd Amendment) Regulations, 2022.

These contains draft of certain regulations further to amend the Chartered Accountants Regulations, 1988

30 days time limit to send any objection or suggestion in respect of the said draft regulations.

To Download the Regulation in PDF, Please Click Here

Breaking: Due Date For Updation Of UDIN At Income Tax Portal Further Extended

Income Tax E-filing Portal has posted an update that:

The timeline to update UDIN is extended till 30th June 2022 to give more time to CAs to correctly verify and upload UDINs.

Breaking: Government Suspends Two GST Officials For Illegal Detention Of Chartered Accountants

On 23rd May 2022, Union Minister Smt. Nirmala Sitharaman held a meeting with ICAI delegation in Gurugram GST refund case.

CBIC has tweeted the updates of meeting as under:

Smt @nsitharaman held a meeting with @theicai delegation, led by VP Shri Aniket Sunil Talati. The MoF had invited the ICAI on Saturday to discuss various issues, including ongoing investigations by CGST Gurugram into alleged role of their members in fraudulent GST refunds. (1/3)

The representatives of @theicai were informed of the suspension of a Deputy Commissioner of GST on Sunday and a superintendent on Saturday itself. Smt @nsitharaman was appreciative of the steps taken by @theicai on engagement with stakeholders. (2/3)

The @theicai representatives informed Smt @nsitharaman that they’ll continue to use recently-enacted ‘CA, CWA and CS Act’ for the inculcation of professional discipline & integrity among its members. @cbic_india Chairman Shri Vivek Johri was also present during the meeting. (3/3)

It is confirmed from the above tweet that two GST officials are suspended in Gurugram GST Refund Case.