{"id":11314,"date":"2026-09-29T18:02:15","date_gmt":"2026-09-29T18:02:15","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=11314"},"modified":"2026-09-29T18:04:00","modified_gmt":"2026-09-29T18:04:00","slug":"standardised-financial-statements-for-non-corporate-entities-for-tra","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/standardised-financial-statements-for-non-corporate-entities-for-tra\/","title":{"rendered":"Standardised Financial Statements for Non-Corporate Entities: For TRA"},"content":{"rendered":"<h2 dir=\"ltr\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-3936\" style=\"font-size: 16px;\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/09\/FAQs-on-Tax-Audit-Under-Income-Tax-Act.jpg\" alt=\"FAQ\u2019s on Tax Audit \u00a0Under Income Tax Act\" width=\"991\" height=\"657\" \/><\/h2>\n<p>FAQ\u2019s on Tax Audit \u00a0Under Income Tax Act<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6abc5b4e886e8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6abc5b4e886e8\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/standardised-financial-statements-for-non-corporate-entities-for-tra\/#Standardised_Financial_Statements_for_Non-Corporate_Entities_What_It_Means_for_Tax_Audit_Reporting\" title=\"Standardised Financial Statements for Non-Corporate Entities: What It Means for Tax Audit Reporting\">Standardised Financial Statements for Non-Corporate Entities: What It Means for Tax Audit Reporting<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/standardised-financial-statements-for-non-corporate-entities-for-tra\/#What_has_changed\" title=\"What has changed?\u00a0\">What has changed?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/standardised-financial-statements-for-non-corporate-entities-for-tra\/#The_tax_audit_connection_with_respect_to_Standardised_Financial_Statements_for_Non-Corporate_Entities\" title=\"The tax audit connection with respect to\u00a0Standardised Financial Statements for Non-Corporate Entities:\">The tax audit connection with respect to\u00a0Standardised Financial Statements for Non-Corporate Entities:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/standardised-financial-statements-for-non-corporate-entities-for-tra\/#The_implementation_timeline_of_Standardised_Financial_Statements_for_non-corporate_entities\" title=\"The implementation timeline of\u00a0Standardised Financial Statements for non-corporate entities:\">The implementation timeline of\u00a0Standardised Financial Statements for non-corporate entities:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/standardised-financial-statements-for-non-corporate-entities-for-tra\/#What_this_means_in_practice_on_Standardised_Financial_Statements_for_Non-Corporate_Entities\" title=\"What this means in practice on\u00a0Standardised Financial Statements for Non-Corporate Entities:\">What this means in practice on\u00a0Standardised Financial Statements for Non-Corporate Entities:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/standardised-financial-statements-for-non-corporate-entities-for-tra\/#Key_takeaway_-Standardised_Financial_Statements_for_Non-Corporate_Entities\" title=\"Key takeaway -Standardised Financial Statements for Non-Corporate Entities:\">Key takeaway -Standardised Financial Statements for Non-Corporate Entities:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Standardised_Financial_Statements_for_Non-Corporate_Entities_What_It_Means_for_Tax_Audit_Reporting\"><\/span><span style=\"color: #000080;\">Standardised Financial Statements for Non-Corporate Entities: What It Means for Tax Audit Reporting<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"What_has_changed\"><\/span><span style=\"color: #000080;\">What has changed?\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\">Until now, only companies had a prescribed format for financial statements under Schedule III to the Companies Act, 2013. Proprietorships, HUFs, partnership firms, AOPs, BOIs and trusts had no mandated format. Their balance sheets and profit and loss accounts followed habit and the preferences of whoever prepared them, so presentation varied widely from one entity to the next. ICAI has now filled that gap with two guidance notes:<\/p>\n<ul dir=\"ltr\">\n<li><span style=\"color: #000080;\">the <strong>Guidance Note on Financial Statements of Non-Corporate Entities<\/strong>, and<\/span><\/li>\n<li><span style=\"color: #000080;\">a companion <strong>Guidance Note on financial statements of limited liability partnerships.<\/strong><\/span><\/li>\n<\/ul>\n<p dir=\"ltr\">Together they prescribe a standard structure for the balance sheet, statement of profit and loss, notes, and disclosures of entities outside the Companies Act. This brings them close to the discipline that Schedule III imposes on companies.<\/p>\n<h3 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"The_tax_audit_connection_with_respect_to_Standardised_Financial_Statements_for_Non-Corporate_Entities\"><\/span><span style=\"color: #000080;\">The tax audit connection with respect to\u00a0Standardised Financial Statements for Non-Corporate Entities:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\">The Guidance Note does more than recommend good practice. It is linked directly to the tax audit report.\u00a0Under the <strong>Eleventh Edition of the Guidance Note on Tax Audit under Section 44AB<\/strong>, the tax auditor must check whether the financial statements follow the prescribed format. Any departure must be reported as an observation or qualification:<\/p>\n<ul dir=\"ltr\">\n<li>in Para 3 of Form No. 3CA, where the accounts are audited under another law, and<\/li>\n<li>With reference to Para 5 of Form No. 3CB, where the tax audit is the only audit.<\/li>\n<\/ul>\n<p dir=\"ltr\">This places a disclosure obligation on the auditor. The Guidance Note does not stop an entity from presenting its accounts differently. But a non-compliant presentation can no longer pass silently: it will appear on the face of the audit report filed with the Income Tax Department. For the entity, that can invite questions. For the auditor, failing to report it is a professional lapse.<\/p>\n<h3 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"The_implementation_timeline_of_Standardised_Financial_Statements_for_non-corporate_entities\"><\/span><span style=\"color: #000080;\">The implementation timeline of\u00a0Standardised Financial Statements for non-corporate entities:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\">The Guidance Notes were first announced for periods beginning on or after 1 April 2024. ICAI later made adoption voluntary for FY 2024-25. At its 451st meeting held on 30\u201331 March 2026, the Council settled the rollout in two phases:<\/p>\n<div dir=\"ltr\">\n<table>\n<thead>\n<tr>\n<th scope=\"col\">Phase<\/th>\n<th scope=\"col\">Accounting periods beginning on or after<\/th>\n<th scope=\"col\">Entities covered<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Phase I<\/td>\n<td>1 April 2025 (FY 2025-26)<\/td>\n<td>Non-corporate entities and LLPs with turnover above INR 5 crore<\/td>\n<\/tr>\n<tr>\n<td>Phase II<\/td>\n<td>1 April 2026 (FY 2026-27)<\/td>\n<td>All remaining non-corporate entities and LLPs, regardless of turnover<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h3 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"What_this_means_in_practice_on_Standardised_Financial_Statements_for_Non-Corporate_Entities\"><\/span><span style=\"color: #000080;\">What this means in practice on\u00a0Standardised Financial Statements for Non-Corporate Entities:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li dir=\"ltr\">For FY 2025-26 (audits being finalised now): firms, proprietorships and other non-corporate entities with turnover above INR 5 crore should already have their accounts in the Guidance Note format. Tax auditors must report any departure in Form 3CA or 3CB.<\/li>\n<li dir=\"ltr\">For FY 2026-27 onwards: every non-corporate entity is covered, including small proprietorships and firms. Accountants and businesses should move their chart of accounts, Tally groupings and year-end templates to the new format now, so that comparatives and notes are ready on time.<\/li>\n<\/ul>\n<h3 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Key_takeaway_-Standardised_Financial_Statements_for_Non-Corporate_Entities\"><\/span><span style=\"color: #000080;\">Key takeaway -Standardised Financial Statements for Non-Corporate Entities:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\">Standardised financial statements are no longer optional for non-corporate entities. The link to tax audit reporting gives the Guidance Note real force, because departures must be disclosed by the auditor. Businesses above \u20b95 crore turnover must comply for FY 2025-26, and all others from FY 2026-27. Now is the time to prepare.<\/p>\n<p dir=\"ltr\"><strong>Need help moving your accounts to the ICAI format or with your tax audit?\u00a0 <\/strong><strong>Rajput Jain &amp; Associates, Chartered Accountants\u00a0 at <\/strong>P-6\/90 (2F), Connaught Circus, New Delhi \u2013 110001<br \/>\n+91-98-11-322-785 | \u260e\ufe0f 9555 555 480 |\u00a0 Email : <a href=\"mailto:info@carajput.com\">info@carajput.com<\/a> |\u00a0 <a href=\"http:\/\/www.carajput.com\">www.carajput.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FAQ\u2019s on Tax Audit \u00a0Under Income Tax Act Standardised Financial Statements for Non-Corporate Entities: What It Means for Tax Audit Reporting What has changed?\u00a0 Until now, only companies had a prescribed format for financial statements under Schedule III to the Companies Act, 2013. Proprietorships, HUFs, partnership firms, AOPs, BOIs and trusts had no mandated format. &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[98],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/11314"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=11314"}],"version-history":[{"count":3,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/11314\/revisions"}],"predecessor-version":[{"id":11317,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/11314\/revisions\/11317"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=11314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=11314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=11314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}