---
title: "Edition No. 14 | 24 August 2026 | BNPS and Associates LLP"
url: "https://bnpsca.com/insight/edition-no-14-24-august-2026"
description: "Highlights: • MCA notifies the Companies (Ind AS) Amendment Rules, 2026 (G.S.R. 725(E), 12 Aug 2026) amending Ind AS 109, 107, 101, 110 and 7 — ESG-linked lo..."
---

# Edition No. 14 \| 24 August 2026

Written by: **[CA Chintan Patel](https://bnpsca.com/partner/ca-chintan-patel)** \| Topic: **Board Members**

 ![Edition No. 14  |  24 August 2026](https://imageproxy.inlancer.in/pr:sharp/f:webp/rs:fit:1200:0/g:sm/plain/https://bnpsca.com/public/assets/upload/images/original/6a8bccce69c89-480-F-1430192478-3w7.jpg)24-08-2026

Highlights:
 • MCA notifies the Companies (Ind AS) Amendment Rules, 2026 (G.S.R. 725(E), 12 Aug 2026) amending Ind AS 109, 107, 101, 110 and 7 — ESG-linked loans, electronic payment settlement and renewable PPAs — effective for periods beginning 1 April 2026, i.e. the current year.

 • Income-tax Department examines approx Rs. 1.29 lakh crore of outward remittances; 394 entities and 36 certifying professionals under verification, with Form 15CB certification standards squarely in focus (reported 18-22 Aug 2026).

 • CBDT notifies FAST-DS (14 Aug 2026): a one-time foreign asset disclosure window, 16 Aug to 31 Dec 2026 — Rs. 1 crore limb at an effective 60%, Rs. 5 crore limb at a flat Rs. 1 lakh, with immunity under the Black Money Act, 2015.

  **—** **CHINTAN'S PERSPECTIVE**

| ![](https://bnpsca.com/public/assets/upload/images/original/6872083e8d605-11.png)  **Chintan N. Patel**  Partner – Financial Reporting & Advisory  *B N P S And Associates LLP* | *Four of this edition's five developments converge on one point: the certificate, the declaration and the filing are becoming the enforcement surface. The Income-tax Department is examining not only remitters but the small group of professionals certifying their remittances. NFRA has again named the firms that did not file Form NFRA-2. FAST-DS invites a voluntary declaration precisely because the data to contradict silence already exists. And the Ind AS amendments notified on 12 August apply to a year already five months old. The discipline is unglamorous: sign nothing that cannot be evidenced, and re-test what was signed before the rules moved.* |
|---|---|

**—** **TOP DEVELOPMENTS**

**01** **IND AS & FINANCIAL REPORTING**

**MCA Notifies Companies (Indian Accounting Standards) Amendment Rules, 2026, Effective for the Year Already Under Way**

**WHY IT MATTERS** *Amendments notified in mid-August apply to periods beginning 1 April 2026 — accounting for ESG-linked loans, electronic payment settlement and renewable power contracts changes for a year already half elapsed.*

By Notification G.S.R. 725(E) dated 12 August 2026, MCA amended Ind AS 109, 107, 101, 110 and 7. The changes cover classification and measurement of financial assets with contingent contractual cash flows — the ESG-linked lending fact pattern — derecognition of liabilities settled through electronic payment systems, a new regime for contracts referencing nature-dependent electricity such as solar and wind power purchase agreements, de facto agent guidance, and annual improvements. Most apply to annual periods beginning on or after 1 April 2026, with specific transition provisions.

| **PRACTICAL IMPLICATION** Entities with sustainability-linked borrowings, renewable PPAs or material electronic settlement balances should re-perform the SPPI assessment and derecognition cut-off for the current year. This is distinct from the Ind AS 21 hyperinflation amendment reported on 12 August, which remains a recommendation effective 1 April 2027. |
|---|

**02** **ENFORCEMENT & PROFESSIONAL RISK**

**Income-tax Department Examines ₹1.29 Lakh Crore of Outward Remittances; 394 Entities and 36 Certifying Professionals Under Verification**

**WHY IT MATTERS** *Verification has been extended from the remitters to the chartered accountants who certified them — a small group of professionals issued a disproportionate share of the Form 15CB certificates now under review.*

Reported between 18 and 22 August 2026, the exercise covers remittances aggregating approximately ₹1.29 lakh crore to over 5,000 overseas entities in FY 2025-26, of which about ₹30,000 crore in the first half of FY26 is flagged as suspicious. Some 394 entities and 36 professionals are under detailed verification. Many flagged remitters did not file returns or reported turnover inconsistent with the sums remitted; declared purposes included freight, software imports and consultancy. Counterparties are largely in Mauritius, the UAE and Singapore.

| **PRACTICAL IMPLICATION** Firms should review Form 15CB working-paper standards — underlying agreement, proof of service receipt, beneficial-ownership enquiry, treaty substantiation — and reassess concentration where few partners sign high volumes. Companies should reconcile Form 15CA/15CB records to the ledger and to Schedule FA. |
|---|

**03** **DIRECT TAX**

**CBDT Notifies FAST-DS: a One-Time Foreign Asset Disclosure Window Open from 16 August to 31 December 2026**

**WHY IT MATTERS** *A time-bound regularisation route for foreign assets below prescribed ceilings, carrying immunity from further tax, penalty and prosecution under the Black Money Act, 2015 — unavailable once the window closes.*

The Foreign Assets of Small Taxpayers – Disclosure Scheme Rules, 2026 were notified on 14 August 2026 under section 143 of the Finance Act, 2026, the scheme itself in Chapter IV, sections 130 to 144. The window runs 16 August to 31 December 2026, valued at fair market value as at 31 March 2026, declared electronically in Form 1. Category 1 covers undisclosed foreign assets up to ₹1 crore, at 30% plus an equal additional amount — an effective 60%. Category 2 covers assets acquired from taxed income or while non-resident, up to ₹5 crore, on a flat fee of ₹1 lakh. Proceeds of crime and already-assessed years are excluded.

| **PRACTICAL IMPLICATION** Category 2 is the more widely relevant limb — returning non-residents, ESOPs in foreign parents and overseas balances omitted from Schedule FA are regularised for ₹1 lakh. Identify affected employees and promoters now; payment mechanics run beyond the declaration date. |
|---|

**04** **TAX LEGISLATION**

**Taxation and Other Laws (Amendment) Act, 2026 Receives Assent; Surcharge on REIT and InvIT Special Purpose Vehicles Raised to 25%**

**WHY IT MATTERS** *A mid-year amendment operating from 1 April 2026 that changes the effective tax rate for business-trust structures and rewrites the offshore-fund safe harbour — both requiring current-year deferred tax and disclosure revisits.*

Introduced in the Lok Sabha on 4 August 2026, passed by that House on 6 August and the Rajya Sabha on 10 August, the Bill received the President's assent as announced on 18 August 2026, generally effective from 1 April 2026. The Act raises the surcharge on special purpose vehicles of business trusts to 25%, with a corresponding dividend exemption for unit holders; exempts FIIs and the Bank for International Settlements on income from government securities; relaxes the Schedule I offshore-fund safe harbour by removing minimum-corpus, member-count and investor-concentration tests; and widens electronics, rough-diamond and data-centre exemptions.

| **PRACTICAL IMPLICATION** REIT and InvIT groups should re-measure current and deferred tax at SPV level from 1 April 2026 and assess the net effect after the unit-holder exemption before the next results release. Fund managers should re-document their position under the amended Schedule I. |
|---|

**05** **AUDIT REGULATION**

**NFRA Republishes Provisional List of Audit Firms That Have Not Filed, or Have Incompletely Filed, Form NFRA-2 for 2024-25**

**WHY IT MATTERS** *A public, firm-level list of annual-return defaults — issued nine months after the due date, with the filing window still open — is a low-cost compliance failure carrying a disproportionate reputational cost.*

By notice dated 15 August 2026, NFRA published an updated provisional list of audit firms that have either not filed or have incompletely filed Form NFRA-2, the auditor's annual return, for the reporting period 2024-25, covering audit reports signed between 1 April 2024 and 31 March 2025. The prescribed due date was 30 November 2025. NFRA has confirmed the filing window remains open and invited firms to write in where a filing has in fact been made or a technical difficulty encountered.

| **PRACTICAL IMPLICATION** Firms within NFRA's domain should verify their own status against the list rather than assume compliance, confirm the return is complete and not merely submitted, and record that verification under SQM 1. A published default list is something a peer reviewer or incoming client will raise. |
|---|

| **— THIS MATTERS MORE THAN IT APPEARS**  *SEBI's FY26 derivatives study, released on 20 August 2026, records that 87.7% of individual equity-derivatives traders lost money, aggregate net losses of ₹91,685 crore, and options accounting for roughly 92% of the total — even as participation fell. Read as a market statistic it is familiar. Read as a governance input it is not. Treasury mandates permitting derivative positions without a hedge rationale, dealing policies silent on employees' personal exposure, and Ind AS 109 hedge designations asserted for positions that are in substance directional all sit on the wrong side of that number.* |
|---|

**—** **AI WATCH**

| Gartner's survey of 743 audit professionals, reported on 20 August 2026, found 93% of audit leaders using AI but only 38% operating under an AI strategy. Usage clusters in preplanning and report drafting (60%) and engagement planning and draft review (40%); fewer than a third apply it to audit testing, and 12% to quality-assurance review. Productivity at the edges, not assurance at the core — and, absent a strategy, no documented basis for relying on any of it. |
|---|

**—** **QUOTE OF THE DAY**

| *“Trust, but verify.”*  — RONALD REAGAN |
|---|

**ABOUT BNPS**

B N P S And Associates LLP is a firm of Chartered Accountants having offices at Ahmedabad, Bengaluru, Raichur, Rajkot. The firm provides professional services in the areas of audit, assurance, financial reporting, taxation, risk advisory, due diligence and related professional services. For details refer, [www.bnpsca.com](http://www.bnpsca.com).

**Disclaimer:** This publication is intended solely for informational purposes and should not be construed as professional advice. Readers should seek professional guidance before acting on any information contained herein.

- Tags:
- [Audit Committee](#)
- [Board](#)
- [NFRA](#)
- [Ind AS](#)
- [Governance](#)
- [Risk](#)

 ![CA Chintan Patel](https://imageproxy.inlancer.in/pr:sharp/f:webp/rs:fit:200:0/g:sm/plain/https://bnpsca.com/public/assets/upload/images/original/6872083e8d605-11.png)About the Author

#### CA Chintan Patel

 Ahmedabad

 Ind AS Advisory Statutory Audit of Listed Companies ESG,BRSR

 [View Profile ](https://bnpsca.com/partner/ca-chintan-patel)

#### Share this on social media :

 [  Share ](http://www.facebook.com/sharer.php?u=https://bnpsca.com/insight/edition-no-14-24-august-2026) [  Tweet ](https://twitter.com/intent/tweet?url=https://bnpsca.com/insight/edition-no-14-24-august-2026) [  Post ](https://vk.com/share.php?url=https://bnpsca.com/insight/edition-no-14-24-august-2026) [  post ](https://www.linkedin.com/shareArticle?mini=true&url=https://bnpsca.com/insight/edition-no-14-24-august-2026) [  Share ](https://api.whatsapp.com/send?text=https://bnpsca.com/insight/edition-no-14-24-august-2026) [  post ](https://reddit.com/submit?url=https://bnpsca.com/insight/edition-no-14-24-august-2026) [  pin ](https://pinterest.com/pin/create/button/?url=https://bnpsca.com/insight/edition-no-14-24-august-2026)

## You May Also Like

Similar Articles You Might Find Interesting

 [ ![Edition No. 1  |  13 June 2026](https://imageproxy.inlancer.in/pr:sharp/f:webp/rs:fit:500:0/g:sm/plain/https://bnpsca.com/public/assets/upload/images/original/6a7aa5f36c663-Images-1.jpeg) ](https://bnpsca.com/insight/edition-no-1-13-june-2026 "Blog Link")13-06-2026

#### [Edition No. 1 \| 13 June 2026](https://bnpsca.com/insight/edition-no-1-13-june-2026 "Edition No. 1  |  13 June 2026")

 By Chintan N. Patel

 [Continue Reading](https://bnpsca.com/insight/edition-no-1-13-june-2026)

 [ ![Edition No. 2  |  14 June 2026](https://imageproxy.inlancer.in/pr:sharp/f:webp/rs:fit:500:0/g:sm/plain/https://bnpsca.com/public/assets/upload/images/original/6a7aa73b97dab-Images-2.jpeg) ](https://bnpsca.com/insight/edition-no-2-14-june-2026 "Blog Link")14-06-2026

#### [Edition No. 2 \| 14 June 2026](https://bnpsca.com/insight/edition-no-2-14-june-2026 "Edition No. 2  |  14 June 2026")

 By Chintan N. Patel

 [Continue Reading](https://bnpsca.com/insight/edition-no-2-14-june-2026)

 [ ![Edition No. 3  |  15 June 2026](https://imageproxy.inlancer.in/pr:sharp/f:webp/rs:fit:500:0/g:sm/plain/https://bnpsca.com/public/assets/upload/images/original/6a7aaa5d87c11-Images-3.jpeg) ](https://bnpsca.com/insight/edition-no-3-15-june-2026 "Blog Link")15-06-2026

#### [Edition No. 3 \| 15 June 2026](https://bnpsca.com/insight/edition-no-3-15-june-2026 "Edition No. 3  |  15 June 2026")

 By Chintan N. Patel

 [Continue Reading](https://bnpsca.com/insight/edition-no-3-15-june-2026)

###  Any Questions After Reading? We’re happy to clarify any doubts and advise you about your business

 [ Get Expert Guidance

 ](https://bnpsca.com/contact-us)

'); $(this).remove(); }); });