XBRL (Extensible Business Reporting Language) is an electronic format mandated by the Ministry of Corporate Affairs (MCA) for filing the financial statements of certain companies. The format enhances data accuracy and comparability, allowing stakeholders to analyze financial performance with greater ease. For the financial year 2023-24, MCA has outlined specific forms and due dates for companies required to file their financial statements in XBRL format.
The following table outlines the essential forms, their purpose, and the due dates for FY 2023-24:
| Name of E-Form | Purpose of E-Form | Due Date of Filing | Due Date for FY 2023-24 |
|---|---|---|---|
| Form AOC-4 (XBRL) | Filing of Annual Accounts in XBRL mode | 30 days from the conclusion of the AGM | 29 October 2024 (if the AGM takes place on 30 September 2024) |
| Form AOC-4 (XBRL) for IND AS-based Financial Statement | Filing of Annual Accounts based on Indian Accounting Standards in XBRL mode | 30 days from the conclusion of the AGM | 29 October 2024 (if the AGM takes place on 30 September 2024) |
| Form CRA-4 | Filing of Cost Audit Report | 30 days from the receipt of Cost Audit Report | 30 days from the receipt of Cost Audit Report |
| Form AOC-4 (NBFC) IND and Form AOC-4 CFS (NBFC) IND | Filing of Annual Accounts based on the Indian Accounting Standard for Non-Banking Financial Institutions (NBFC) | 30 days from the conclusion of the AGM | 30 days from the conclusion of the AGM |
Concept of Penalty/Additional Fees
Filing beyond the stipulated due dates can result in penalties. Below is the penalty structure for delayed filings:
| Period of Delays | Fees |
|---|---|
| Up to 30 days | 2 times of normal fees |
| More than 30 days and up to 60 days | 4 times of normal fees |
| More than 60 days and up to 90 days | 6 times of normal fees |
| More than 90 days and up to 180 days | 10 times of normal fees |
| More than 180 days up to 270 days | 12 times of normal fees |
Note: The additional fee for E-form AOC-4 (XBRL and Non-XBRL) and Form MGT-7 after the due date is ₹100 per day, with effect from July 1, 2018.
Benefits of XBRL Filing
- Accuracy and Standardization: By presenting financial data in a consistent and standardized manner, XBRL lowers the likelihood of manual errors.
- Enhanced Reporting Efficiency: Automating data tagging and validation improves reporting speed and efficiency.
- Improved data analysis: Investors, regulators, and other stakeholders can easily compare financial data across companies and periods.
- Regulatory Compliance: Filing through XBRL ensures compliance with the Companies Act, avoiding legal complications.
- Cost savings: Automating financial data handling reduces the long-term costs associated with manual reporting processes.
Procedure for XBRL Filing
- Check Applicability: Verify if your company falls under the criteria requiring XBRL filing.
- Prepare financial statements in XBRL format: Use XBRL software to tag financial data.
- Validate the Document: Use the MCA's validation tool to ensure compliance with taxonomy.
- File the form (for example, AOC-4 XBRL): Submit the form on the MCA portal with digital signatures.
- Receive Acknowledgement: For record-keeping purposes, retain the acknowledgement.
Documents Required for XBRL Filing
- Audited Financial Statements
- Board’s Report and Auditor’s Report
- Digital Signatures of Authorised Personnel
- XBRL Taxonomy Document
- Validation Report from MCA’s Tool
Frequently Asked Questions (FAQs)
What is XBRL filing?
XBRL filing is a standardized format for submitting financial statements to the MCA, enabling automated data validation and comparison.
Is XBRL filing mandatory for all companies?
No, it is only mandatory for certain companies that meet specific criteria for capital, turnover, and accounting standards.
What is the penalty for late filing?
Penalties range from two to twelve times the normal fee, depending on the duration of the delay, with an additional ₹100 per day as per MCA rules.
How does XBRL benefit companies?
XBRL ensures accurate, consistent, and standardized reporting, enhancing data analysis and reducing manual errors.
Can individuals file returns using XBRL?
No, XBRL filing is strictly for corporate entities and does not apply to individual tax returns.
