---
title: "Edition No. 18 | 29 August 2026 | BNPS and Associates LLP"
url: "https://bnpsca.com/insight/edition-no-18-29-august-2026"
description: "Key highlights: • CBDT extends AY 2026-27 tax audit deadline to 21 Oct 2026 (ITR to 21 Nov) — CBDT has flagged this is a final extension; treat it as an abso..."
---

# Edition No. 18 \| 29 August 2026

Topic: **Board Members**

 ![Edition No. 18  |  29 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/6abb520290e4b-480-F-579731528-WLBh.jpg)29-09-2026

Key highlights:

 • CBDT extends AY 2026-27 tax audit deadline to 21 Oct 2026 (ITR to 21 Nov) — CBDT has flagged this is a final extension; treat it as an absolute cutoff.

 • FEMA: Exporters’ repatriation period cut from 15 to 9 months, effective 1 Oct 2026 — audit open EDPMS entries NOW; those relying on the earlier 15-month window are at default risk.

 • CBI FIR in ₹1,322-cr LIC Housing Finance fraud names two CA firms as issuers of the inflated net worth certificates — net worth certifications are no longer low-risk engagements.

  **—** **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 developments this week describe the same pressure from different directions: the cost of administrative inattention is rising. The CBDT tax audit extension — now an annual rescue operation with its own representation season — arrived at the last possible moment, shifting the Section 44AB deadline by twenty-one days. Four weeks earlier, the FEMA repatriation framework was tightened with almost no runway: exporters who believed they had fifteen months to realise proceeds now have nine, from 1 October. ICAI’s revised financial-statement format for non-corporate entities entered mandatory Phase II from 1 April 2026; practices still finalising FY 2025-26 accounts for partnership and LLP clients in the old format are non-compliant today. And the CBI’s FIR against Subhash Chandra and associated entities for an alleged ₹1,322-crore fraud on LIC Housing Finance places net worth certificates issued by two CA firms at the centre of the scheme — a reminder that the professional document treated as a formality can become the most scrutinised exhibit in an investigation. Across all four, the margin for treating compliance as routine has narrowed.* |
|---|---|

**—** **TOP DEVELOPMENTS**

**01** **PROFESSIONAL UPDATES**

**CBDT Extends AY 2026-27 Tax Audit Due Date to 21 October 2026; Income-Tax Return Deadline for Audit Cases Moved to 21 November**

**WHY IT MATTERS** *The extension is final — CBDT has made clear it does not intend further relief for AY 2026-27, making 21 October an effective hard stop for practitioners.*

CBDT, by Circular dated 27 September 2026, extended the due date for furnishing tax audit reports under Section 44AB of the Income-tax Act, 1961 for AY 2026-27 from 30 September 2026 to 21 October 2026. Consequentially, the due date for filing the corresponding income-tax return has been extended from 31 October 2026 to 21 November 2026. The extension was granted in response to sustained representations from CA bodies and tax bar associations citing systemic challenges in completing audits within the original timeframe.

| **PRACTICAL IMPLICATION** Practices should immediately recalibrate audit completion schedules and communicate revised deadlines to clients. Treat 21 October as an absolute cutoff — quality review of pending files, particularly those with complex related-party transactions or recent system changes, should be completed before the final week. The consequential ITR extension to 21 November applies only to assessees whose accounts are required to be audited. |
|---|

**02** **RISK & REGULATORY**

**FEMA Export-Import Regulations 2026: Exporters’ Repatriation Period Tightened from 15 to 9 Months, Effective 1 October 2026**

**WHY IT MATTERS** *Open EDPMS entries calibrated to the earlier 15-month window are at immediate FEMA default risk from 1 October — the tightening arrives with less than a week’s notice.*

The Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2026, notified 22 September 2026 and effective 1 October 2026, consolidate and tighten the export-proceeds-realisation framework. The ordinary deadline for repatriating export proceeds in foreign currency is reduced from 15 months to 9 months from the date of shipment. For INR-invoiced or INR-settled exports the period compresses from 18 months to 12 months. The revised framework also transitions software exports from SOFTEX to the Export Declaration Form (EDF), aligns import-payment timelines with contractual terms, assigns Authorised Dealer banks substantially greater operational responsibility and introduces a ₹10 lakh threshold for declaration-based closure of smaller EDPMS and IDPMS entries.

| **PRACTICAL IMPLICATION** Export-oriented businesses and their advisors should immediately audit all open EDPMS entries and identify shipments whose realisation deadline falls within the new 9-month window. Clients relying on the earlier 15-month period for trade-receivables management must recalibrate credit terms and collections without delay. The AD bank should be engaged at once on the expanded operational responsibilities under the new framework. |
|---|

**03** **FINANCIAL REPORTING**

**ICAI Guidance Note on Financial Statements of Non-Corporate Entities — Phase II Mandatory from 1 April 2026; Excel Utility and Compliance Checklist Now Available**

**WHY IT MATTERS** *FY 2025-26 financial statements for partnerships, LLPs, trusts, HUFs, AoPs and cooperative societies must follow the revised ICAI format — accounts still being prepared in the legacy format are already non-compliant.*

ICAI’s revised Guidance Note on Financial Statements of Non-Corporate Entities entered Phase II mandatory applicability from 1 April 2026, making the new prescribed formats compulsory for all financial statements of partnership firms, LLPs, trusts, AoPs, HUFs, cooperative societies and mutual funds for periods commencing on or after that date, covering FY 2025-26 finalisations now under way. ICAI has released a comprehensive Excel utility, format schedules and a compliance checklist to support practitioners. Phase I (voluntary from 1 April 2023) had allowed early adoption; Phase II removes all optionality.

| **PRACTICAL IMPLICATION** Practitioners finalising FY 2025-26 accounts for non-corporate clients should halt preparation in legacy formats and transition immediately to the revised ICAI format using the released Excel utility. The compliance checklist should be retained in the audit or compilation file. Engagement letters for pending non-corporate assignments should document the new format requirement explicitly. |
|---|

**04** **FRAUD & INVESTIGATION**

**CBI Books Subhash Chandra and Others for Alleged ₹1,322-Crore Loan Fraud on LIC Housing Finance Through Inflated Net Worth Certificates**

**WHY IT MATTERS** *Two CA firms issued the net worth certificates that allegedly underpinned the loans — bringing the due-diligence obligations and liability exposure of certifying professionals directly into the frame of a major fraud investigation.*

The CBI’s Banking Security and Fraud Branch registered FIR No. RC0742026E0007 on 31 August 2026 against Subhash Chandra, Vasant Sagar Properties and its director Pankaj Suroliya, Pan India Infrastructure, Digital Subscriber Management and Consultancy Services and its director Amish Pandya, and Spirit Infrapower and Multiventures and its director Rajeev Dholakia, for alleged criminal conspiracy, cheating, criminal breach of trust and criminal misconduct. Two loan facilities — ₹500 crore to Vasant Sagar Properties and Pan India Infraprojects and ₹480 crore to Digital entities — were allegedly obtained from LIC Housing Finance Limited using net worth certificates issued by CA firms DJM & Co. and MPJ & Co. The Vasant Sagar certificate purported to show a net worth of USD 6,197.62 million (₹59,113 crore) as at March 2018; the Digital certificate claimed ₹40,562 crore as at July 2018.

| **PRACTICAL IMPLICATION** CA firms issuing net worth certificates used in credit applications must treat such engagements with assurance-level rigour: independent corroboration of underlying assets, bank statements verified directly with the institution, documented procedures and retained working papers. Neither DJM & Co. nor MPJ & Co. is named as accused — but absent working papers demonstrating independent verification, that position may not be sustainable as the investigation proceeds. |
|---|

**—** **AI WATCH**

| McKinsey’s Technology Trends Outlook 2026 projects AI infrastructure investment will reach USD 769 billion this year — a more-than-fivefold increase from USD 145 billion in 2025, with nearly half already committed in H1 2026 alone. The figure that matters more for boards and audit committees is not the headline total but its conversion rate: only 37% of organisations deploying AI report measurable positive EBIT impact, even as 89% use AI in at least one business function. McKinsey frames the defining question of the agentic era as ‘not how autonomous agents can become but how much autonomy the enterprise can safely absorb.’ That is already a governance question — responsible AI governance frameworks, board-level AI risk mandates and controls over AI-generated outputs are moving from aspiration to audit scope faster than most organisations have planned for. US data centres alone are projected to consume electricity equivalent to California’s entire current usage by 2030, and 2,500-plus gigawatts of global energy projects are awaiting grid connection. AI risk is no longer only a technology risk. |
|---|

**—** **QUOTE OF THE DAY**

| *“Facts do not cease to exist because they are ignored.”*  — ALDOUS HUXLEY |
|---|

**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.

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