MCA Updates
Companies (Indian Accounting Standards) Amendment Rules, 2026 – Key Highlights
The Ministry of Corporate Affairs, vide Notification No. G.S.R. 725(E) dated 12 August 2026, has notified the Companies (Indian Accounting Standards) Amendment Rules, 2026, in consultation with the National Financial Reporting Authority (NFRA), further amending the Companies (Indian Accounting Standards) Rules, 2015. The amendments come into force from the date of publication in the Official Gazette.
The amendments primarily incorporate Annual Improvements to IND AS (2024) and amendments relating to the classification and measurement of financial instruments, along with specific requirements for contracts referencing nature-dependent electricity. The key changes include amendments to IND AS 101, IND AS 107, IND AS 109, IND AS 110 and IND AS 7.
Key changes include:
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IND AS 101 – First-time Adoption of IND AS: Clarifications have been made to the treatment of hedge accounting during transition to IND AS, including restrictions on retrospectively designating certain transactions as hedges.
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IND AS 107 – Financial Instruments: Disclosures: New disclosure requirements have been introduced in relation to contracts referencing nature-dependent electricity, including information concerning contractual terms, future cash flows, risks and financial performance.
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IND AS 109 – Financial Instruments: Significant amendments address the classification and measurement of financial instruments and introduce specific guidance on contracts referencing nature-dependent electricity, including their scope assessment and hedge accounting treatment.
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IND AS 110 – Consolidated Financial Statements: The guidance relating to de facto agents has been amended to clarify their role in assessing control over an investee.
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IND AS 7 – Statement of Cash Flows: The requirements relating to cash flows between an investor and an associate, joint venture or subsidiary accounted for at cost have been clarified.
Most of the amendments are applicable for annual reporting periods beginning on or after 1 April 2026. Specific transition provisions have also been prescribed, including retrospective application in certain cases and relief from restating comparative information where specified conditions are met.
Overall, the notification seeks to align the IND AS framework with recent international accounting developments while introducing targeted guidance for emerging transactions, particularly those involving nature-dependent electricity and financial instruments.
Click here to access the notification
Extension of Companies Compliance Facilitation Scheme, 2026 (CCFS- 2026) up to 15th September 2026 reg
The Ministry of Corporate Affairs has extended the validity of the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026), providing companies additional time to complete their pending statutory filings.
The Scheme, which was originally valid up to 31st August 2026 has now been extended to 15th September 2026, in response to the representations received from various stakeholders.
The extension has been issued with the approval of the competent authority.
Click here to access the circular
SEBI Updates
Amendment to SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015 (“ILMDS Regulations”)
SEBI has issued a circular introducing operational changes to the regulatory framework governing municipal debt securities, pursuant to the recommendations of the Working Group constituted in August 2024 and the amendments to the SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015 notified on July 8, 2026.
Key changes include:
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Face Value: For privately placed municipal debt securities, the face value shall be ₹1 lakh or ₹10,000, as deemed appropriate. Securities with a face value of ₹10,000 shall have a fixed maturity and no structured obligations. The trading lot shall be equal to the face value. These requirements do not apply to public issues.
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Two-Step Escrow Mechanism: Where the issuer is a pooled finance vehicle/SPV established under the Pooled Finance Development Fund Scheme, constituent municipalities shall maintain the prescribed accounts, with funds subsequently transferred to the SPV’s Interest Payment Account and Sinking Fund Account. The SPV shall maintain an amount equivalent to one year’s interest obligation in the Interest Payment Account throughout the tenure of the securities. Regulatory Updates
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Credit Enhancement: Pooled finance vehicles/SPVs may adopt measures such as additional cash collateral, State Government program equity, access to State Finance Commission devolutions, credit guarantees from highly rated DFIs/multilateral institutions, or other appropriate structures to enhance credit ratings and investor protection.
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Financial Results: The timelines for submission of financial results by listed municipalities have been relaxed:
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Half-yearly unaudited financial results: within 60 days from the end of the first half-year (earlier 45 days).
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Annual audited financial results: within 90 days from the end of the financial year (earlier 60 days).
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The provisions of the circular are effective immediately and are aimed at addressing operational challenges faced by municipalities while strengthening investor protection and facilitating the development of the municipal debt securities market.
Click here to access the circular
GST Updates
GST compliance continues to become more technology-driven, with GSTN strengthening the integration between e-Invoice and e-Way Bill systems.
1. Mandatory Ship-To GSTIN:
The Goods and Services Tax Network (GSTN) Effective 01-08-2026 introduced requirements to capture the actual delivery destination’s GSTIN for Bill-To/Ship-To transactions during invoice uploads and API integrations, though some roll-outs faced brief status holds or phased clarifications by authorities
The objective is to improve visibility in complex supply chains and ensure that the movement of goods can be accurately tracked.
2. Voluntary e-Way Bill Closure
A new facility was introduced allowing suppliers, buyers, or transporters to officially mark an e-Way Bill as closed or completed once goods are successfully delivered.
3. Impact on e-Invoice & e-Way Bill APIs
The requirement also impacts transactions where the e-Way Bill is generated along with the IRN or subsequently using the IRN. Businesses using ERP/API integrations should ensure their systems are updated and tested. The facility can be used by eligible suppliers, recipients, transporters or authorized persons.
4. Stronger transaction traceability
These changes are aimed at improving the audit trail, data integrity, and system-based verification of movement of goods.
Income Tax Updates
CBDT Notifies Rules for Foreign Assets of Small Taxpayers Disclosure Scheme, 2026
The Central Government has notified the Foreign Assets of Small Taxpayers – Disclosure Scheme Rules, 2026, effective from 16 August 2026, prescribing the framework for disclosure and valuation of foreign assets under the Finance Act, 2026.
The Scheme is open to an eligible assessee – a person who was resident in India under section 6 of the Income-tax Act, 1961 in the relevant previous year, or who is presently a non-resident or resident but not ordinarily resident (RNOR) but was resident in India either in the previous year to which the undisclosed foreign income relates or in the previous year in which the undisclosed foreign asset was acquired. Current non-resident status alone therefore does not determine eligibility. An eligible assessee has to file the declaration in respect of each previous year in which he had reportable undisclosed foreign income or a reportable foreign asset that was not disclosed in the return of income – the Scheme may be availed of for any previous year, subject to the prescribed thresholds and conditions. Irrespective of the year to which the income or asset pertains, the value of the foreign asset is to be determined as on the common valuation date of 31 March 2026, in accordance with the valuation methods prescribed under the Rules. The declaration is to be filed electronically in Form 1, and the last date for making the disclosure is 31 December 2026, after which no declaration can be filed under the Scheme.
Click here for the notification
The Taxation and Other Laws (Amendment) Act 2026 received the president assent on August 17, 2026
The Taxation and Other Laws (Amendment) Act, 2026 has received the assent of the President on 17 August 2026 and is deemed to have come into force from 1 April 2026, except where a provision specifies its own effective date. The Act amends the Income Tax Act, 2025, the Finance Act, 2026 and the Payment and Settlement Systems Act, 2007, and replaces the Income-tax (Amendment) Ordinance, 2026 dated 5 June 2026, while preserving all actions taken under that Ordinance.
A brief highlight of the amendments on the direct tax side is provided below:
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Exempts foreign institutional investors and the Bank for International Settlements from tax on interest income and capital gains arising from Indian government securities, for income arising on or after 1 April 2026, subject to furnishing of the prescribed information.
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Replaces the safe harbour conditions applicable to offshore investment funds engaging fund managers based in India, thereby easing the conditions such funds are required to satisfy so that their global income is not brought to tax in India.
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The income tax exemption available to foreign companies engaging a contract manufacturer in India has been extended up to the tax year 2040-41 and widened to cover specified electronic goods, including mobile phones, laptops, personal computers, tablets, servers and their key parts and accessories, where the contract manufacturer produces such goods on behalf of the foreign company for consideration.
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Exemptions for foreign companies have also been extended and widened in respect of data centre services and the rough diamond trade, the latter applying to income arising on or after 1 October 2026.
