NICAI Update, Delhi (2026)

25/06/2026

Respected Members,

Quotes of the day;

1. Patience and Silence are two Powerful energies. Patience makes you mentally strong, Silence makes you Emotionally strong. Patience is not the Ability to wait, But the ability to keep.

2. As You Wake up Today, Remember You areCreated to Succeed, Designed to Win, Equipped to Overcome, Directed to Prosperand Blessed to Become Blessings for the others.

FCRA update;

1. Foreign Contribution (Regulation) Amendment Rules, 2026. Notified by the Ministry of Home Affairs on 22 June 2026, amending the FCRA Rules, 2011. Effective from the date of Gazette publication.

2. Key changes:

Key Functionary' defined — Directors, Partners, Trustees, Karta of HUF, governing body members — all now covered under one standardised term.

Registration Scope made mandatory — Every FCRA certificate will now specify Purpose(s) + States/UTs. New applications must choose from the prescribed Schedule only.

ACTION for existing NGOs — All currently registered entities must file Form FC-6F with MHA within 1 year (by 21 June 2027) declaring their purpose & operating States.
Fee revision — ₹300 extra per additional State/UT + ₹300 per additional purpose beyond the base.

2nd Instalment (Prior Permission) — New Form FC-3BB required. Released only after 75% utilisation + field inquiry. CA certificate mandatory.

Minimum activity threshold — NGOs must utilise at least ₹10 lakh of FC in last 2 FYs to qualify as 'reasonable activity' for renewal/cancellation review.

FC-4 Annual Return — Detailed activity report mandatory. UDIN compulsory on CA certificate. Social media accounts + publications to be disclosed.

Foreign nationals as key functionaries — Ordinarily NOT eligible for registration/prior permission.

New Schedule of 5 Purpose Categories — Religious (16), Cultural (18), Economic (19), Educational (22), Social (30) activities listed.

3. Follow the CA Raj Chawla NICAI Update Channel on WhatsApp to get the latest ICAI news, announcements, professional updates, and important notifications instantly Link :https://whatsapp.com/channel/0029Vb6q4i8LNSZwQ3bbxY2

24/06/2026

Respected Members,

Quotes of the day;

1. The Cost of Discipline is always less than the Price of Regret. So Self-Discipline is the biggest Investment for Success in Life.

2. OUR LIFE is 10% how we MAKE IT butRemaining 90% how we TAKE IT. Strong Positivity leads to MIRACLES. Be Positive Always.

New Income Tax Rules update

1. The Draft Income Tax Rules, 2026 have introduced Rule 166 for the first time to standardize when a return of income will be treated as "defective" under Section 263(7) of the Income Tax Act, 2026. Earlier, the 1962 Rules had no dedicated rule for this, leading to ambiguity for taxpayers and the department.

Key Highlights of Draft Rule 166
1. Purpose of Rule 166
Rule 166 creates clear parameters for defective returns to reduce back-and-forth after filing and improve predictability for filers. It works with Section 263(7) of the new Act, just like Section 139(9) did under the Old Act.

2. Four Specific Conditions When ITR Will Be Marked Defective Under Rule 166(1), your return will be regarded as defective if any one of these conditions is satisfied:

Condition A: Incomplete or Improperly Filled Return
All applicable fields, parts, schedules, statements, and columns must be duly filled. This specifically includes:
Computation of income under applicable heads of income
Computation of Gross Total Income
Computation of Total Income

Partial disclosure or missing computations are no longer treated as minor technical lapses.

Condition B: Audit Report Not Filed Before ITR
In cases where audit is mandatory under Section 63, the audit report must be furnished prior to filing the return of income. Failure to do so will make the return defective. This enforces "audit first, return filing thereafter".

Condition C: Missing Tax Payment Details in Updated Returns
If the return is furnished under Section 263(6) for updated returns, details of tax payment as required under Section 267 must be duly filled in. Missing challan/assessment payment details will trigger a defect.

Condition D: Incorrect MAT/AMT Credit Claim
The brought forward credit of Minimum Alternate Tax or Alternate Minimum Tax claimed must match the carry forward of MAT/AMT in your latest return allowed to you. Claims that do not align or exceed the latest allowed credit will be treated as defective.

3. Board’s Power to Grant Relaxations
Rule 166(2) empowers the Central Board of Direct Taxes to notify specific classes of persons for whom any of the above conditions may not apply or may apply with modifications.

4. Consequences of a Defective Return
A defective return notice under Section 139(9) gives you 15 days to rectify the defect. The Assessing Officer can extend this time if you apply.

If you fail to rectify within the prescribed time by filing in the applicable form, the return may be treated as invalid - effectively as if no return was filed. This attracts all consequences of non-filing, including penalties and loss of carry-forward benefits.

For AY 2025-26, tax authorities already issued a considerable number of Section 139(9) notices due to incorrect ITR form selection, showing active enforcement based on TDS, AIS and other reporting data.

5. Context: Draft Rules 2026 Compliance Push
Rule 166 is part of a broader compliance tightening in Draft Income Tax Rules 2026. While ITR-1 to ITR-7 forms remain, stricter eligibility conditions and enhanced disclosures are proposed. The rules also plan digital notices through a dedicated mobile app.

6. What Taxpayers Should Do Before Filing
Tax experts recommend a "defect sweep" before submission:
1. Confirm all mandatory schedules compute without errors
2. Furnish audit report first if audit applies under Section 63
3. Reconcile tax payments with challans and fill Section 267 details for updated returns
4. Verify MAT/AMT carry forward matches latest accepted return

The Draft Income Tax Rules, 2026 are open for public consultation before implementation from April 2026.

7. Follow the CA Raj Chawla NICAI Update Channel on WhatsApp to get the latest ICAI news, announcements, professional updates, and important notifications instantly Link :https://whatsapp.com/channel/0029Vb6q4i8LNSZwQ3bbxY2

23/06/2026

Respected Members,

Quotes of the day;

1. Loud Voice of Aarti from the Temple, Namaz in the Masjid, Prayer in a Church, Is heard by the People, Not by the God. GOD Hears the Silent Voice Which comes from the Core of Hearts.

2. A satisfied life is better than a successful life.Because our success is measured by others,But our satisfaction is measured by our own soul, mind & heart.

NICAI update;

1. Gujarat High Court Quashes Section 148 Notice Because Retrospective Notional Land Rates Cannot Justify Reopening; Section 148 Notice Invalid Because Seized Material Neither Pertained to Nor Related to Assessee; Reopening Under Section 148 Fails Because Revenue Could Not Establish Prima Facie Link with Assessee;

2. Gujarat HC Quashes Reassessment Because Revenue Relied on Vague Third-Party Information; Section 148 Cannot Be Invoked Because Reassessment Was Based on Unrelated Loose Paper and Retrospective Comparison: Gujarat HC The Gujarat High Court quashed the notice issued under Section 148 of the Income-tax Act, 1961, holding that the reassessment proceedings were based on vague third-party material, lacked a live link with the assessee, and relied upon a retrospective application of a notional land rate.

3. The Court held that Section 148 could not be invoked where the seized material neither pertained to nor related to the assessee in a manner establishing a prima facie case of income escaping assessment.

4. Indian banks have turned cautious on lending to small businesses as early signs of stress emerge in the micro, small and medium enterprises (MSME) segment, prompting tighter underwriting and a moderation in credit growth, showed a report by 360 ONE Capital citing a CRIF High Mark report.

5. MSME loan growth slowed to 12.7% year-on-year in April 2026 from around 18%-20% seen in previous quarters, as lenders reassessed risk and curtailed fresh disbursals, data from CRIF High Mark showed.

6. The slowdown was sharper in active loans, which advanced just 2.5% year-on-year compared with 6%-9.4% earlier, indicating a more cautious stance by lenders, the CRIF High Mark report showed.

7. Follow the CA Raj Chawla NICAI Update Channel on WhatsApp to get the latest ICAI news, announcements, professional updates, and important notifications instantly Link :https://whatsapp.com/channel/0029Vb6q4i8LNSZwQ3bbxY2

22/06/2026

Respected Members,

We are pleased to invite you to a Webinar on Section 143(2) of the Income-tax Act – Understanding Scrutiny Assessments.

Date: Saturday, 27th June, 2026
Time: 4:00 PM – 5:30 PM (IST)

Session Speaker:
Adv (CA) Sachin Jain
9810170619

Session Moderator:
Mr. Satyam Gupta
9711081083

Key Highlights:
Introduction to Section 143(2) and its significance in income tax assessments.
Types of scrutiny assessments under the Income-tax Act.
Circumstances leading to issuance of notice under Section 143(2).
Time limits for issuance and validity of notice.
Mandatory conditions and legal requirements for a valid notice.

Fees: ₹200

Payment Link: https://forms.gle/6vheLqXoHjDazJ5b9

We look forward to your participation in this informative and practical session.

Warm regards,
Satyam Gupta
97110-81083

CA (Dr.) Raj Chawla
98110-81083

22/06/2026

Respected Members,

Quotes of the day;

1. Steal the beauty of thoughts from wherever you find. Because the beauty of the face changes with age. But the beauty of thoughts always remains immortal in the hearts.

2. Our words are very powerful. Always make sure that you use the right words. Which encourages people instead of discouraging.

NICAI update;

1. The Supreme Court has reiterated that the doctrine of constructive res judicata, embodied in Explanation IV to Section 11 of the Code of Civil Procedure, is aimed at preventing parties from litigating in instalments and ensuring finality in judicial proceedings. Court highlighted the following principles:

2. All Grounds That "Might and Ought" to Have Been Raised Must Be Raised :Constructive res judicata requires parties to raise all grounds of attack or defence that were available and ought to have been taken in the earlier proceedings. The doctrine seeks to prevent multiplicity of litigation and piecemeal adjudication.

3. The Doctrine Is a Legal Fiction Whose Application Depends on the Facts of Each Case: Constructive res judicata operates through a deeming fiction: a matter that was not actually raised may nevertheless be treated as having been in issue. However, its application is not automatic. Whether the doctrine applies depends on the facts and circumstances of each case, including the scope of the earlier proceedings and the connection between the omitted ground and the controversy involved.

4. The Doctrine Is Founded on Public Policy
The rule rests on the public policy that litigation must attain finality and that no person should be vexed twice over in respect of the same dispute. In Daryao v. State of Uttar Pradesh (1961), the Supreme Court held that although constructive res judicata may have technical aspects, its foundation lies in considerations of public policy, namely finality of judicial decisions and protection against repetitive litigation.

5. "Ought" Means More Than Mere Possibility
The fact that a plea could have been raised is not sufficient. The omitted ground must be one that the party was expected to raise in the earlier proceedings.
The Supreme Court emphasized that the expression "ought" imports a threshold higher than mere possibility. The omitted issue must have been so connected with the earlier controversy that it reasonably should have been raised at that stage.

6. Parties Must Exercise Reasonable Diligence
The doctrine expects litigants to exercise reasonable diligence and to raise all issues falling within the legitimate purview of the litigation. Drawing from Henderson v. Henderson, Greenhalgh v. Mallard and State of Karnataka v. All India Manufacturers Organisation, the Court reiterated that the inquiry is whether the omitted matter properly belonged to the subject of litigation and could have been raised through the exercise of reasonable diligence.

7. Negligence, Inadvertence or Accident Do Not Avoid the Bar: A party cannot escape constructive res judicata by contending that a plea was omitted due to negligence, inadvertence, oversight or accident. Relying on Henderson v. Henderson and reaffirming the principle in Samir Kumar Majumder v. Union of India (2023), the Court held that the doctrine applies with full force even where the omission occurred unintentionally. A litigant who fails to raise a ground that both "might and ought" to have been raised does so at his own peril.

8. Follow the CA Raj Chawla NICAI Update Channel on WhatsApp to get the latest ICAI news, announcements, professional updates, and important notifications instantly Link :https://whatsapp.com/channel/0029Vb6q4i8LNSZwQ3bbxY2

20/06/2026

Respected Members,

We are pleased to invite you to a Webinar on Structural Reforms and Risk Mitigation for Registered NPOs Under the Income Tax Act 2025

Date: Saturday, 20th June, 2026
Time: 4:00 PM – 5:30 PM (IST)

Session Speaker:
CA Jitender Wadhwa
9899212872

Session Moderator:
CA Dolly Deep Pandeya
9873373866

Key Topics to be covered:
1. New NPO Framework under Sections 332–355 of the Income Tax Act, 2025
2. 12A & 80G Registration/Renewal – Key Compliance Issues
3. Managing Risks of Expired Registrations
4. Business Income vs. Charitable Activities – Practical Case Studies
5. Separate Books of Account for Commercial Activities
6. Cancellation of Registration – Major Triggers & Safeguards

Fees: ₹200

Payment Link: https://forms.gle/41v8JNVb47RGFktU8

We look forward to your participation in this informative and practical session.

Warm regards,
Satyam Gupta
97110-81083

CA (Dr.) Raj Chawla
98110-81083

19/06/2026

Respected Members,

Quotes of the day;

1. Confidence and Hard-work are the best medicine to kill the disease called failure.

2. Remember, whenever you're in the position to help someone, be glad and always do it because that's God answering someone else's prayers through you.

Supreme Court on Gaming GST;

1. Supreme Court Upholds 28% GST on Full Stake Value for Online Gaming, Ends Long Dispute. Case: Directorate General of GST Intelligence v. Gameskraft Technologies Pvt. Ltd., Supreme Court of India

2. Key Verdict Points:

Landmark Decision
The Supreme Court has settled the long-standing GST dispute in the online gaming sector with a final ruling on tax applicability.

3.Tax on Full Stakes, Not Just Platform Fee
GST at 28% will be levied on the entire amount staked or deposited by players. The tax is not limited to platform fees or Gross Gaming Revenue GGR.

4. Skill vs Chance Not a Factor for GST:
For GST classification, the Court said the skill element of a game is irrelevant. The decisive factor is whether money is wagered on an uncertain outcome.

5. "Chance to Win" Treated as Taxable Goods: The Court held that the right to participate and the chance to win constitutes an "actionable claim" and is taxable as goods under GST law.

6. Gaming Platforms Classified as Suppliers:
Online gaming operators are considered suppliers of the "chance to win". They are not mere intermediaries or facilitators.

7. Industry Impact:
This ruling will reshape pricing, compliance, and business models across online gaming, fantasy sports, and casino platforms. The tax burden on operators increases significantly since GST now applies to the full player stake instead of just the commission or rake.

8. Why This Matters:
The judgment provides long-awaited clarity on GST treatment but also means higher tax liability for the industry. It could lead to changes in entry fees, prize pools, and user costs on gaming platforms.

9. Follow the CA Raj Chawla NICAI Update Channel on WhatsApp to get the latest ICAI news, announcements, professional updates, and important notifications instantly Link :https://whatsapp.com/channel/0029Vb6q4i8LNSZwQ3bbxY2j

18/06/2026

Dear Professional Colleagues,

Om Shanti!

I am pleased to invite you and your family to participate in the Mind-Money Management (MMM-4) National Seva Conference, being organized by the Finance Fraternity Seva Wing of Brahma Kumaris at their Headquarters, Mansarovar, Abu Road, Rajasthan, from 12th to 16th August 2026.

This unique conference is specially designed for Chartered Accountants, Company Secretaries, Cost Accountants, CFAs, MBAs, Bankers, CFOs, GST & Income Tax Officers, and other finance professionals to explore the integration of professional excellence with inner well-being through Rajyoga Meditation and spiritual wisdom.

Key Highlights

• Rajyoga Meditation for enhanced concentration and decision-making
• Self-Empowerment and Stress Management
• Work-Life Balance and Emotional Resilience
• Interactive Workshops and Practical Sessions
• Mind-Money Management Strategies
• Holistic Learning in a serene and spiritual environment
• Participation with spouse and children (above 7 years) is welcome
• Registration and accommodation are completely free (subject to registration)

Conference Details

Dates: 12th – 16th August 2026
Venue: Divya Shakti Anubhuti Hall & Dining Hall at Mansarovar Campus, Abu Road, Rajasthan
Theme: Mind-Money Management – Happiness Unlimited @ Lifetime
Family participation encouraged (Children above 7 years)

Registration Link: https://forms.gle/wNqHpRBVH8nGPeVDA

Venue Preview: https://youtube.com/shorts/4zFGlBgL5Yw?si=EoCTXe8FRWIrcnXz

I have personally found the Brahma Kumaris programmes to be highly enriching, offering valuable insights for balancing professional success with peace of mind and personal well-being. I believe this conference will be a meaningful experience for every finance professional.

I would be delighted to see members of our professional fraternity participate in this transformative event.

With warm regards,

16/06/2026

Respected Members,

Quotes of the day;

1. Excellence is not for someone else to notice, it's for your own Satisfaction. Don't climb a mountain with an intention that the World should see you, Climb it with the intention to see the World.

2. Our hardest times often lead to greatest moments in life, tough situations build strong people in the end.

NICAI update;

1. Rajasthan High Court disposed of a writ petition concerning the validity of reassessment proceedings initiated under Section 148 of the Income Tax Act, 1961, by a Jurisdictional Assessing Officer (JAO) instead of a Faceless Assessing Officer (FAO). The Court noted that the issue raised had already been conclusively decided by a Coordinate Bench in Sharda Devi Chhajer & Anr. v. Income Tax Officer & Anr. and connected matters decided on 19 March 2025. In Sharda Devi Chhajer, the Coordinate Bench had held that notices were issued.

2. A ruling by the Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has underscored the importance of understanding tax deduction at source (TDS) obligations when purchasing property. The case involved a Mumbai resident, who had jointly purchased a residential flat in the tiny area of Haji Ali, worth Rs 1.9 crore with her husband. She held a 15% share in the property (Rs. 28.50 lakh) and deducted TDS of Rs 28,500 under Section 194-IA on her share of the purchase price. However, the tax department later raised a demand exceeding Rs 5.8 lakh, alleging short deduction of tax on the ground that the seller's PAN was inoperative and therefore higher TDS provisions under Section 206AA should have applied. The ITAT deleted the demand, noting that the seller had subsequently linked Aadhaar with PAN and regularised the PAN within the timeline prescribed by a circular issued by the Central Board of Direct Taxes (CBDT) in July 2025. The ITAT also observed that the seller had disclosed the capital gains in his tax return and paid the applicable taxes, making it inappropriate to treat the buyer as an 'assessee in default'.

3. Haryana Government Mandates Intimation of GST Show Cause Notices and Demand Orders through Registered/Speed Post to Strengthen Taxpayer Communication. These instructions shall come into force with effect from 01 June 2026.

4. Foreign portfolio investors (FPIs) stepped up purchases of Indian government securities after the government and the Reserve Bank of India (RBI) announced measures to attract foreign capital inflows. FPIs bought Rs 11,087 crore worth of government securities through the fully accessible route (FAR) over the past week following the June 5 announcements. So far in June, FPIs have made net purchases of Rs 15,895 crore in government bonds — the highest in 15 months. This follows moderate inflows of Rs 5,693 crore in May and Rs 5,081 crore in April. In contrast, March witnessed a record outflow of Rs 17,688 crore amid heightened global uncertainty following the onset of the war.

5. Follow the CA Raj Chawla NICAI Update Channel on WhatsApp to get the latest ICAI news, announcements, professional updates, and important notifications instantly Link :https://whatsapp.com/channel/0029Vb6q4i8LNSZwQ3bbxY2j

15/06/2026

Respected Members,

Quotes of the day;

1. Distance never kills a relationship.. Closeness never builds a relationship.. It's the caring of one's feelings that builds faith and maintains a relationship.

2. Share the winning experience with Youngers, as they can follow you. Share the losing experience with elders, as they can guide you. Sharing with the Right Person at the Right Time is always fruitful.

CBDT Scrutiny Update;

1. CBDT has notified 6 categories for mandatory complete scrutiny. Notice u/s 143(2) must be issued by 30.06.2026, else no scrutiny.

2. Who’s covered:

CS 01: Survey u/s 133A on/after 01.04.2024
CS 02: Search u/s 132 / Requisition u/s 132A on/after 01.04.2024. Post 01.09.2024 cases follow 158BA(6) block assessment.

CS 03: 148 notices. Pre-1.9.24 search/survey → jurisdictional AO. Others → NaFAC by 31.3.27
CS 04: Trusts/Inst with 12A/12AB/10(23C)/35(1) cancelled/rejected by 31.3.25 but claimed exemption in ITR-7. Appeal reversals excluded.

CS 05: Recurring addition upheld earlier + ₹50L metro / ₹20L non-metro in current year
CS 06: Specific tax evasion info from any enforcement/intelligence agency
3. Safe harbor: Returns filed due to 142(1) on AIS/SFT/NMS/CPC data won’t face compulsory scrutiny unless CS 06 exists.

4. Follow the CA Raj Chawla NICAI Update Channel on WhatsApp to get the latest ICAI news, announcements, professional updates, and important notifications instantly Link :https://whatsapp.com/channel/0029Vb6q4i8LNSZwQ3bbxY2j

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