--- title: "Edition No. 8 | 9 JuLY 2026 | BNPS and Associates LLP" url: "https://bnpsca.com/insight/edition-no-8-9-july-2026" description: "KEY HIGHLIGHTS: • CBDT notifies TDS exemption on ship lease rent to IFSC units — among the first operational notifications under the Income-tax Act, 2025; Fo..." --- # Edition No. 8 \| 9 JuLY 2026 Topic: **Board Members** ![Edition No. 8 | 9 JuLY 2026](https://imageproxy.inlancer.in/pr:sharp/f:webp/rs:fit:1200:0/g:sm/plain/https://bnpsca.com/public/assets/upload/images/original/6a7c1c13703e4-Images-8.jpeg)09-07-2026 KEY HIGHLIGHTS: • CBDT notifies TDS exemption on ship lease rent to IFSC units — among the first operational notifications under the Income-tax Act, 2025; Form 1(N) declaration mandatory. • GSTN: AATO amendment window for FY 2025-26 now open July 1-31; turnover figure will auto-update as returns are filed — reconcile with books this month. • PCAOB seeks public comment on its standards agenda for the first time — fraud, NOCLAR and AI on the table; comments due August 7. | | **CHINTAN'S PERSPECTIVE** | |---|---| | ![Title: Chintan N. Patel - Description: Partner](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* | This edition captures a quieter but consequential theme: the re-platforming of the rules themselves. The CBDT has begun operationalising the Income-tax Act, 2025 through fresh notifications — new section numbers, new forms, new rules — and every legacy compliance reference must now be re-mapped. GSTN has converted aggregate annual turnover into a system-maintained figure that updates automatically as returns are filed. The PCAOB, for the first time in its history, has opened its standard-setting agenda to public comment, with fraud, NOCLAR and artificial intelligence on the table. None of these is headline enforcement news, yet each changes the plumbing on which finance, tax and audit processes run. Processes anchored to yesterday's references fail silently. Reviewing those anchors is this quarter's most underrated control activity. | |---|---| | | **TOP DEVELOPMENTS** | |---|---| | **01** | **CBDT Exempts TDS on Ship Lease Rentals Paid to IFSC Units — Among the First Operational Notifications under the Income-tax Act, 2025** ***WHY IT MATTERS*** *The first wave of operational notifications under the Income-tax Act, 2025 has begun — re-enacting legacy IFSC concessions under new section numbers, new forms and the Income-tax Rules, 2026, all of which compliance systems must now re-map.* By Notification No. 75/2026 dated July 3, 2026, the CBDT has provided that no tax is deductible under section 393(1) of the Income-tax Act, 2025 on lease rent or supplemental lease rent paid to an IFSC unit engaged in ship leasing, retrospectively effective from April 1, 2026. The lessor must furnish a statement-cum-declaration in Form No. 1(N) specifying the twenty consecutive tax years opted for deduction under section 147. A parallel notification has been reported extending similar relief to aircraft leasing. **PRACTICAL IMPLICATION** Lessees must obtain Form No. 1(N) before suspending deduction and must still report the exempt payments in TDS statements under section 397(3)(b) read with rule 219 of the Income-tax Rules, 2026. Payments relating to tax years outside the declared twenty-year window remain fully subject to deduction. | |---|---| | **02** | **GSTN Revises AATO Amendment Window: July 1–31 for FY 2025-26 as Auto-Updating Turnover Functionality Goes Live** ***WHY IT MATTERS*** *Aggregate annual turnover on the GST portal is now a system-maintained figure that updates automatically as returns are filed — and it drives e-invoicing applicability, scheme eligibility and departmental risk profiling.* By advisory dated July 1, 2026, GSTN has rescheduled the AATO amendment window for FY 2025-26 to July 1–31, 2026, replacing the May window that applied under the earlier 2022 advisory. Jurisdictional officers will review amended figures between August 1 and August 15, 2026. The revision accompanies deployment of an upgraded functionality that automatically updates AATO as subsequent returns are filed after the amendment window, intended to improve consistency and uniformity across GST portal modules. **PRACTICAL IMPLICATION** Tax teams should reconcile portal AATO with books and audited turnover during July and file amendment applications where figures diverge. AATO determines e-invoicing applicability, QRMP eligibility and risk classification — an uncorrected figure now propagates automatically across the portal. | |---|---| | **03** | **PCAOB Opens Its Standard-Setting Agenda to Public Comment for the First Time — Fraud, NOCLAR and AI on the Table** ***WHY IT MATTERS*** *The US audit regulator's first-ever public consultation on standard-setting priorities signals a recalibration whose outcomes — particularly on fraud and non-compliance with laws and regulations — have historically influenced IAASB and, in turn, Indian auditing standards.* On June 23, 2026, the PCAOB issued Release No. 2026-005, seeking public comment for the first time on its standard-setting and research agendas; comments are due August 7, 2026. The consultation revisits shelved projects on NOCLAR (AS 2405) and firm and engagement performance metrics, and contemplates revising the fraud standard AS 2401 — including evaluating alignment with the IAASB's revised ISA 240 — alongside projects on data, technology and AI, critical audit matters and auditor independence. **PRACTICAL IMPLICATION** Firms auditing US-listed entities or components of PCAOB-registered groups should assess exposure to the fraud and NOCLAR proposals. For Indian practitioners, movement on AS 2401 aligned with ISA 240 previews the direction in which SA 240 revisions are likely to head. | |---|---| | **04** | **IASB Proposes Consolidation Exception for SME Intermediate Parents Held by Investment Entities** ***WHY IT MATTERS*** *The Exposure Draft removes an anomaly under which the IFRS for SMEs Standard was more onerous than full IFRS — intermediate parents under investment-entity parents currently must consolidate despite the equivalent IFRS 10 exemption.* The IASB's Exposure Draft 'Consolidation Exception', published in May 2026 and featured in the June 2026 IFRS for SMEs Update, is open for comment until September 9, 2026. It proposes that an SME intermediate parent whose investment-entity parent prepares full IFRS financial statements measuring subsidiaries at fair value through profit or loss need no longer prepare consolidated financial statements — mirroring the IFRS 10 exemption currently absent from paragraph 9.3 of the Standard. If issued, the amendments would be effective from January 1, 2027, alongside the third edition. **PRACTICAL IMPLICATION** Groups with fund or investment-entity structures holding subsidiaries that report under the IFRS for SMEs Standard should evaluate whether the exception reduces consolidation effort from 2027, and consider responding to the Exposure Draft where the fact pattern applies. | |---|---| | | **THIS MATTERS MORE THAN IT APPEARS** | |---|---| | The CBDT's IFSC notification is a small item carrying a large signal: it is among the first operational notifications under the Income-tax Act, 2025, and it previews the transition mechanics — familiar reliefs re-enacted under unfamiliar section numbers, new prescribed forms, and the Income-tax Rules, 2026. Every TDS matrix, compliance calendar, ERP tax configuration and standard operating procedure that cites the 1961 Act by section number is now a latent error. The same logic extends to GSTN's auto-updating turnover figure. Controls that reference superseded provisions do not fail loudly; they fail silently — until a notice arrives. | |---| | | **AI WATCH** | |---|---| | At FICCI's National Conference on Agile Governance in Mumbai on July 7, 2026, finance and audit leaders converged on a consistent position: AI is now indispensable for fraud detection across full-population data sets, but autonomous reliance is dangerous — a human must own whatever AI produces. For CFOs and auditors, the governance question has shifted from whether to deploy AI to who is accountable for its output. | |---| | | **QUOTE OF THE DAY** | |---|---| | *"An ounce of prevention is worth a pound of cure."* — Benjamin Franklin | |---| | | **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](https://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](#) #### Share this on social media : [ Share ](http://www.facebook.com/sharer.php?u=https://bnpsca.com/insight/edition-no-8-9-july-2026) [ Tweet ](https://twitter.com/intent/tweet?url=https://bnpsca.com/insight/edition-no-8-9-july-2026) [ Post ](https://vk.com/share.php?url=https://bnpsca.com/insight/edition-no-8-9-july-2026) [ post ](https://www.linkedin.com/shareArticle?mini=true&url=https://bnpsca.com/insight/edition-no-8-9-july-2026) [ Share ](https://api.whatsapp.com/send?text=https://bnpsca.com/insight/edition-no-8-9-july-2026) [ post ](https://reddit.com/submit?url=https://bnpsca.com/insight/edition-no-8-9-july-2026) [ pin ](https://pinterest.com/pin/create/button/?url=https://bnpsca.com/insight/edition-no-8-9-july-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. 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