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.
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
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