MCA Introduces Amendments in Companies (Accounting Standards) Rules, 2026: Know Key Changes:

The MCA has notified the Companies (Accounting Standards) Amendment Rules, 2026, introducing a new provision in AS-22 related to OECD Pillar Two income taxes.
Major Update in AS-22 on Pillar Two Income Taxes

MCA Introduces Amendments in Companies (Accounting Standards) Rules, 2026: Know Key Changes
The Ministry of Corporate Affairs (MCA) has recently issued an official notification dated March 10, 2026, stating that the Central Government has made a few significant amendments to the rules of the Companies (Accounting Standards) Rules, 2021.
The government has taken this action in exercise of its powers granted under section 133 read with section 469 of the Companies Act, 2013 (18 of 2013), in consultation with the National Financial Reporting Authority (NFRA) established under section 132 of the said Act.
The following is the list of amendments that have been introduced by the government:
1. These amended rules will now be called the Companies (Accounting Standards) Amendment Rules, 2026.
2. The amendment in the said notification has already been made effective from March 10, 2025 (date of publication of the notification in the Official Gazette).
In the Companies (Accounting Standards) Rules, 2021, under the heading B. Accounting Standards, under the subheading Accounting Standard (AS) 22, after paragraph 2, the following content has been added:
"2A. This Standard applies to taxes on income arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the Organisation for Economic Co-operation and Development (OECD), including tax law that implements qualified domestic minimum top-up taxes described in those rules. Such tax law, and the taxes on income arising from it, are hereafter referred to as ‘Pillar Two legislation’ and ‘Pillar Two income taxes'. As an exception to the requirements in this standard, an enterprise should neither recognize nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes."
Refer to the official notification for complete information.
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Saloni Kumari
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Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].
Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].
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