BCAS President CA Zubin Billimoria’s Message for the Month of October 2025
My Dear BCAS Family,
The notification of Income Tax Act, 2025 following the assent by the Hon’ble President of India on 21st August, 2025 marks a watershed moment in the legislative history of the country in general and specifically for professionals like us. The Act will apply from 1st April, 2026 and will replace the more than 60 year old Income Tax Act, 1961. Also, at the time of writing, the first of the many compliance deadlines related to the filing of the individual tax returns within the extended timelines of 16th September, 2025 has ended but there are still a series of never ending deadlines primarily on tax, audit and charity commissioner related matters over the next couple of months which will result in continuous compliance obligations for the concerned professionals. Finally, if that were not enough, the regular slew of filing deadlines on a periodical basis all year round makes us compliance mechanics or robots!. This has tempted me to share my thoughts on the theme of compliance and its changing dynamics and its role for professionals and institutions like us.
The word compliance evokes thoughts about statutes, rules, deadlines, filings, and inspections. Whilst prima facie it appears as a “checklist-driven” obligation and an unavoidable cost of doing business in a regulated environment, it is far more than just adherence to law; it is the foundation of trust and governance on which sustainable businesses and institutions are built.
Changing Landscape of Compliance and Role of Professionals:
Compliance has evolved dramatically in the past few decades and has kept pace with the maturing and global integration of our economy on its journey towards becoming the world’s third largest economy in the next couple of years as projected by several experts. The compliance landscape has now widened from Corporate, Tax and Labour laws to a vast ecosystem encompassing accounting standards, securities regulations, environmental norms, data privacy and cyber security and social responsibility related legislations, amongst others. In today’s interconnected world, compliance is no longer limited to the “letter of the law” but extends to the “spirit of the law” and includes meeting the expectations of multiple stakeholders like shareholders, regulators, customers, employees, and the society at large.
The changing landscape of compliance primarily rests on the following pillars:
Tone at the Top – The corporate and industrial landscape is dominated by promoter and family driven enterprises which contribute to approximately 75% of India’s GDP. Consequently, compliance is primarily driven by the cultural mindset or the tone at the top and permeates to every level of an organization from the boardroom to the shop floor. When directors, both promoters and independent, and senior management demonstrate commitment to ethical practices, the message percolates across the organisation. There is now a greater shift towards separation of ownership from management by hiring outside professionals which has a positive impact on the compliance culture, though the undercurrents of promoter interference could occasionally surface.
On the flipside, the cost of non-compliance is not just financial in terms of fines and penalties but also erodes credibility, damages reputation and in extreme cases, can destroy institutions. History is replete with several recent examples where lapses in compliance, whether in financial reporting or corporate governance have led to catastrophic consequences for businesses, employees and investors.
Governance, Ethics and Risk Management – Companies which embrace compliance not as a burden but as a pillar of governance command better market value and earn greater trust since investors allocate more capital and employees and other stakeholders are more attracted to such companies. This can be achieved through various tools like robust internal controls, well-documented risk management frameworks and a transparent whistle-blower policy. These are not just “tick-box” measures but enable good governance in spirit.
Sustainability – Stakeholders are now benchmarking entities not only based on their financial performance but also on their impact on the environment and rewarding those companies which have a positive and sustainable impact thereon. This is enforced through legislative measures like ESG (Environmental, Social and Governance) and Business Responsibility and Sustainability Reporting (BRSR) disclosures, Green Financing guidelines issued by the RBI and also several international frameworks like GRI reporting, Task Force on Climate Reporting Disclosures (TCFD), amongst others.
Technology and AI – The increasing complexity of regulatory frameworks and huge amount of data has made manual compliance nearly impossible. Technology is now a powerful ally in ensuring real-time monitoring, automation of filings and predictive risk analytics. From AI-driven audit tools to blockchain-enabled transparency, the compliance ecosystem is being reshaped by innovation.
The flip side is that we should not become slaves of technology whilst enforcing compliance but use it as a constructive enabler. The recent reports of non existent case laws cited in a judgement by a trial court in Karnataka, using Chat GPT, which was challenged by the petitioner and the defendant as not having being referred to by them represents the AI Hallucinations phenomenon which produce responses that are fabricated, but seem logical on the surface, need to be guarded against. The bottom line is that technology is not a substitute for human judgement.
For Chartered Accountants, the changing landscape on compliance has widened their responsibilities. They are no longer just custodians of financial compliance; but are interpreters of governance and ambassadors of ethical business conduct. They are uniquely placed to bridge the gap between compliance as a statutory requirement and compliance as a governance enabler, by interpreting complex laws, designing control frameworks and guiding boards on ethical choices. In doing so, they help institutions transition from being reactive rule-followers to proactive value-creators.
BCAS as a Facilitator of Compliance:
Though BCAS is a voluntary autonomous body, it is a shining example of how voluntary compliance builds institutions of trust. Over its seven decades long journey it has earned the respect and confidence of its members and the larger community by being perceived as a conscience keeper of the profession through the programmes it conducts, publications and advocacy and social initiatives thereby moving towards the future where trust and transparency are non-negotiable.
Fostering Innovation through Trust:
I would like to conclude by quoting the author Stephen M.R. Covey who in the course of an interview the emphasized the importance of trust in fostering innovation. Compliance by creating an environment of trust resonates with this principle – a principle that also defines the ethos of BCAS, where trust is non-negotiable!
“Compliance does not foster innovation, trust does. You can’t sustain long-term innovation, for example, in a climate of distrust”.
A big thank you to one and all!
