ICAI Extends Time Limit for Transfer of Goodwill
ICAI Extends Time Limit for Transfer of Goodwill of Proprietary Firm After Member’s Death
The Council of ICAI has decided to extend the period allowed for transferring the goodwill of a proprietary firm belonging to a deceased member. The permissible time limit has been increased from one year to three years from the member’s date of death.
As a result of this decision, wherever the Code of Ethics, 2026 (Volume I) previously referred to a one-year period for such goodwill transfers, it should now be interpreted as three years.
This amendment provides the legal heirs or eligible successors with additional time to complete the transfer process in accordance with the applicable provisions of the Code of Ethics.
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