Update: The Institute of Chartered Accountants of India has extended the Condonation Scheme to regularize UDINs to 28th February 2021. Hence, it is being informed to the members that all the missed UDINs between the period 1st February 2019 to 31st January 2021 can now be generated up to 28th February 2021 and this be taken as an extension of the Condonation Scheme announced previously. Read the official announcement here.
Update: As per the Press Release of CBDT dated 26th November 2020, The Tax Reports / Forms will be treated valid only if their UDINs have been validated by CBDT E-filing Portal. For doing so, CAs will have a buffer time of 15 days to update their UDIN at the e-filing portal in addition to providing the same instantly. In this regard, CBDT has given a one-time relaxation by allowing them to update UDINs for forms latest by 31st December 2020 for treating these forms as valid. Read the official announcement here.
The Institute of Chartered Accountants of India(ICAI) in its endeavor to make sure that all the businessmen and clients who obtain any certificate from Chartered Accountants are in no manner forged, has introduced a Unique concept of - Unique Document Identification Number.
It has been noticed that financial documents/ certificates are often attested by third person misrepresenting themselves as CAs, thus misleading the authorities and stakeholders. ICAI is also receiving a number of complaints of forged signatures of CAs. To curb the malpractices, the Professional Development Committee of ICAI has implemented in a phased manner an innovative concept of Unique Document Identification Number. The concept was made mandatory with effect from 1st February 2019 as per the Council decision taken on its 379th Meeting held on 17th – 18th December 2018.
So, now it is very crucial that the document issued by a Chartered Accountant is having a UDIN. We being CAs, very well know that it is our smart articles who usually prepare such certificates and we verify and sign them. So, it is equally relevant for each & every CA Aspirant working as an articles assistant to very well understand about Unique Document Identification Number.
So, here we go:
Eight Things that every person should know about UDIN:
1. Format of Unique Document Identification Number :
Firstly, it is very relevant to understand the format of the number known as Unique Document Identification Number. If you have a proper understanding of this number format, you can also check it by just viewing the number and verify whether it is correct or not.
The 18- digits UDIN (YY MMMMMM AANNNAANNN) will be like;
First 2 Digits are YY - Last 2 digits of the Current Year (19 in this case)
Next 6 Digits are MMMMMM – ICAI's Membership No. (304576 in this case)
Next 10 Digits are AANNNAANNN –Alpha-numeric generated randomly by the system (AKTSBN1359).
How to verify UDIN?
The Unique Document Identification Number so indicated on the certificate can be searched through the search option on UDIN Portal/verified by Banks/Regulators/Authorities by sharing a few details such as Name of the Authority, Mobile Number, and Email of the person searching the Unique Document Identification Number. However, they are not required to register themselves on the Portal.
2. When to generate Unique Document Identification Number?
Secondly, now the timing of the generation of this Unique Document Identification Number is equally significant. It is to be generated at the time of signing the Certificate.
However, the same can be generated within 15 days of the signing of the same (i.e within 15 days from the date mentioned at Certificates and not beyond that). There is no option to generate the Unique Document Identification Number in advance. However, there is an option to generate the Unique Document Identification Number within 15 days of the signing of the certificate.
Same has been temporarily extended to 30 days for the year 2019.
3. From 1st February 2019, UDIN is mandatory for all the certificates? What is meant by Certificates?
Thirdly, now we need to have a crystal clear understanding of the distinction between Covered and Non-Covered Items for Unique Document Identification Number generation. It would be mandatorily required to be generated for ALL the certificates that are covered for Unique Document Identification Number.
List of Covered Items:
It is mandatory to obtain Unique Document Identification Number for ALL Certificates* issued where the Financial Information/related contents are CERTIFIED as True and Fair / True and Correct.
1. Capital Contribution Certificate/net worth certificate (ALL NWC)
2. Turnover Certificate
3. Working Capital Certificate/Net Working Capital Certificate
4. Certification of Fair Values of Shares of Company
5. Certificates for Foreign Remittance outside India in form 15CB.
6. Certification of arm's length price u/s 92 of the Income Tax Act, 1961.
7. Certificates for funds/ Grants utilisation Charitable trust/institution
8. Certification for a claim of refund under GST Act and other Indirect Taxes.
9. Certificate issued for KYC purpose to banks confirming sole proprietorship
10. Certificate Regarding Sources of Income
11. Certificate issued under RERA
List of Non-Covered Items:
1. Auditor's Opinion/Reports issued by the Practicing Chartered Accountant under any Statute w.r.t. any entity or any person (e.g.: Tax Audit, Transfer Price Audit, VAT Audit, GST Audit, Company Audit, Trust Audit, Society Audit, etc.,
2. Valuation Reports,
3. Quarterly Review Reports,
4. Limited Review Report
5. Information System Audit,
6. Forensic Audit,
7. Revenue / Credit / Stock Audit,
8. Borrower Monitoring Assignments,
9. Concurrent / Internal Audit and the like,
10. Any report of what so ever nature issued including Transfer Price Study Report, Viability Study Report, Diligence Report, Due Diligence Report, Management Report, etc.
Importantly, the Unique Document Identification Number is not required for certified true copies.
4. Whether UDIN will be applicable only for manually signed documents or also for digitally signed certificates being uploaded online such as Form 15 CB?
Unique Document Identification Number will be applicable both for manually as well as digitally signed Certificates / uploaded online. In the case of digitally signed / online certificates, Unique Document Identification Number has to be generated and retained for providing the same on being asked by any third party/ authority.
Yes, even for DIGITALLY signed certificate too Unique Document Identification Number has to be generated and retained.
5. Registration Procedure for UDIN:
But before understanding the registration procedure, let's first understand that who has to be Registered on UDIN Portal? A Firm or a Member?
A Partnership Firm cannot be registered on the portal. Only members of ICAI having a full-time Certificate of Practice(COP) can register on the portal.
Now, moving on to a 3 Simple Steps of Registration:
Step 1: Visit website: udin.icai.org; Click "Member Registration" or click at "For the first time sign up, click here"
Step 2: Registration window will be opened. After entering Six-digits Membership No., Date of Birth and Year of Enrolment. Click "Send OTP". An OTP will be sent to the registered Mobile and Email of the Member.
Step 3: On confirmation of OTP as received, a Username and Password will be sent to the registered Email and Mobile No.
Also, there is no need for fresh registration for every financial year.
6. How to actually generate a Unique Document Identification Number (UDIN)?
• Go to udin.icai.org, LOGIN by entering Username and Password. Click "Generate UDIN" from the menu bar.
• Select the Document Type from the drop-down menu.
• Enter Date of Signing Document i.e. the date of signing/ certifying the document.
• Then Enter 2 Financial Figures i.e. any Financial Figures from the document such as Turnover/Net Worth etc. In case, there is no Financial Figure in the Certificate, Zero (0) is to be mentioned in Financial Figure and in its Particulars mention "There is no Financial Figure in Certificate".
• Then Enter the DOCUMENT DESCRIPTION of the Figure i.e. Turnover/ Net Worth etc. to be filled in 10 to 50 characters.
• Then Click the button "Send OTP". After this an OTP will be received on Registered Mobile and Email of the Member. Then Enter OTP as received and click "Preview". In Preview details entered for generating the Unique Document Identification Number will be displayed. If there is any change/error in the content, click "Back" button, or else, click "Submit".
• Thereafter, 18 Digit Unique Document Identification Number will be generated and that Unique Document Identification Number can be used for mentioning on the Certificate for which it has been generated either by printing (watermarked) the same or by handwritten or printed. If it is being handwritten or printed, it can be mentioned after Signatures and Membership Number of the Member.
Unique Document Identification Number shall be mentioned after every Signature and Membership Number of the Member. Unique Document Identification Number can be revoked by mentioning the reason. Further, there is no time limit for allowing revocation. with narration.
7. What is the consequence of not generating UDIN which are made mandatory by ICAI in respective phases?
A member of the Institute, whether in practice or not, shall be deemed to be guilty of professional misconduct if he -
Clause (1) contravenes any of the provisions of this Act or the regulations made thereunder or any guidelines issued by the Council.
This clause is very important. It requires every member of the Institute to act within the framework of the Chartered Accountants Act and the Regulations made thereunder. Any violation either of the Act or the Regulations by a member would amount to misconduct
Professional misconduct has been defined in part I, II and III of the First Schedule; and part I and II of the Second Schedule.
Unique Document Identification Number generation is being made mandatory as per the Council Decision hence not generating UDIN for mandatory documents will amount to non-adherence of the Council Decision and may attract disciplinary proceedings as per the Second Schedule Part II (Professional misconduct in relation to members of ICAI in general) of The Chartered Accountants Act, 1949.
So, this was all you MUST know being a member of ICAI or an Aspiring CA or being any person who obtains any certificate from a CA. Share this resource with all your Professional colleagues and that we continue our endeavor to follow the best ethical practices and comply with all regulations laid down by ICAI.
8. How to generate UDIN in Bulk?
Here is the complete process of Unique Document Identification Number in bulk:
• After you log in, from the Menu bar, click on Bulk Unique Document Identification Number for Certificates.
• Click on the Download Template button to download the template and open in Excel. The file will open in excel 2007 and later versions.
• From the drop-down category, select "Certificate Type"
• Enter dates in the format as per your system/computer. Excel will format dates automatically in required format i.e dd-mm-yyyy. Avoid using copy paste in this cell.
• Enter all the parameters and values and save the file.
• Click on the upload file on the Certificate Form on the Portal.
• Select the file just saved now.
• Portal will then populate the data in the Form. Verify the data so populated.
• Send and Verify OTP and Submit, if correct.
• Alternatively, the option of filling the details of Type of Certificates, Dates and key fields etc. is available on the form itself.