Applicability of ICAI Guidance Note on Financial Statements of Non-Corporate Entities/LLPs for FY 2025-26 and 2026-27
ICAI has issued an important announcement on applicability of ‘Guidance Note on Financial Statements of Non-Corporate Entities’ and ‘Guidance Note on Financial Statements of Limited Liability Partnerships’ for annual reporting periods 2025-26 onwards
Earlier, ICAI had announced relaxation in compliance with the ‘Guidance Note on Financial Statements of Non-Corporate entities’ and ‘Guidance Note on Financial Statements of Limited Liability Partnerships’ for annual reporting period 2024-25
The Council at its 451st meeting held on 30th-31st March, 2026, has decided that these Guidance Note(s) shall be applicable to Non-Corporate Entities and Limited Liability Partnerships in a phased manner, as under:
| Applicable from | Criteria | |
| Phase I: | Accounting periods beginning on or after April 1, 2025. | Entities whose turnover exceeds Rs. 5 crores |
| Phase II | Accounting periods beginning on or after April 1, 2026. | All entities |
- Return/Balance sheet filed within limitation extended by SC to be considered within time
- Satisfaction Note u/s 153C – term immediate cannot be extended to unreasonable delay
- Addition for rental income on accrual basis deleted as court case was pending
- ITAT allows credit balance adjustment for addition of deemed dividend u/s 2(22)(e)
- Addition u/s 50C deleted based on FMV as per CA report under Rule 11UA(1)(b)
