ICAI Extends Time Limit for Transfer of Goodwill of Deceased CA Proprietor Firms from 1 Year to 3 Years


Quick Summary
The Institute of Chartered Accountants of India (ICAI) has announced a significant extension for the transfer of goodwill from deceased CA proprietor firms. The time limit has been increased from one year to three years, providing much-needed relief for families and acquiring members. This change, approved by the ICAI Council and issued by the Ethical Standards Board, amends the Code of Ethics, 2026.

In a significant relief for the families of deceased Chartered Accountants and members seeking to acquire the goodwill of proprietary CA firms, the Institute of Chartered Accountants of India (ICAI) has extended the time limit for the transfer of goodwill from one year to three years from the date of death of the member.

The announcement was issued by the Ethical Standards Board (ESB) of ICAI on July 25, 2026, following approval by the ICAI Council.

ICAI Extends Goodwill Transfer Time to 3 Years

Official copy of the notification is as follows

Ethical Standards Board
The Institute of Chartered Accountants of India

Announcement

Increase in the time limit for transfer of Goodwill of a proprietary firm of a deceased member from one year to three years.

The Council of the ICAI has approved an increase in the time limit for transfer of goodwill of a proprietary firm of a deceased member from one year to three years from the date of death of the member.

Accordingly, the time limit of one year shall be read as three years in the provisions relating to goodwill appearing in the Code of Ethics, 2026, Volume I.

Secretary, ICAI

FAQ :

The time limit for transferring the goodwill of a deceased CA proprietor firm has been extended from one year to three years from the date of the member's death.

The Institute of Chartered Accountants of India (ICAI) has announced this extension.

The announcement was issued by the Ethical Standards Board (ESB) of ICAI on July 25, 2026.

Yes, the ICAI Council has approved the increase in the time limit for the transfer of goodwill.

The time limit of one year will now be read as three years in the provisions relating to goodwill appearing in the Code of Ethics, 2026, Volume I.




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