The Institute of Chartered Accountants of India (ICAI) has extended the deadline for the transfer of goodwill associated with deceased CA members' proprietary firms from one year to three years. This amendment aims to provide more flexibility for the firms navigating the transfer process.
ICAI Amends Goodwill Transfer Provisions
The ICAI has announced an extension of the deadline for the transfer of goodwill concerning proprietary firms of deceased Chartered Accountant members. The new time limit is now set at three years, revised from the previous one-year term as stated in the ICAI's Code of Ethics.
This change is aimed at facilitating smoother transitions for firms dealing with the aftermath of a member’s passing. The revised provisions reflect the ICAI's recognition of the challenges faced by firms in the timely transition of goodwill and addresses the need for greater flexibility.
Practitioners in the accounting and legal fields should take note of this amendment, as it gives firms additional time to address the transfer of goodwill, thereby easing administrative burdens during a sensitive period.
The ICAI noted, "This extension aims to assist in the proper transfer of goodwill and support CA firms during transitional times."
Citations
- ICAI Notification (2026)
