India is an increasingly favoured business hub offering numerous commercial opportunities. However, it requires a task force of meticulous planners and laborious staff to meet their desired expectations and objectives. In order to ensure compliance of effective accounting, auditing and taxation practices, the services of a professional known as a Chartered Accountant is required. The Chartered Accountants occupy a vital role in the management of the affairs of a company while handling the accounts and financial management.
In order to monitor the profession, the Government enforced the Chartered Accountants Act, 1949 (hereinafter referred to as the “Act”) with a view to regulate the profession of Chartered Accountancy in India.
The Institute of Chartered Accountants of India (hereinafter referred to as the “ICAI”) is the national professional accounting body of India established under the Act. The professionals recognized thereunder are required to abide by the professional standards, and violation of which could entail a disciplinary action against them.
As per the provisions of the Act, no member of the Institute shall be entitled to practise in India unless he has obtained from the ICAI a certificate of practice.
ICAI had been witnessing instances where financial statements and documents were being certified/ attested by third persons in lieu of the duly registered Chartered Accountant members. These statements were held to be misleading various authorities/other stake holders who rely upon them. In order to curb the menace of such improper and illegal acts, the ICAI introduced the concept of Unique Document Identification Number (hereinafter referred to as the “UDIN”).
UDIN is a unique number, which will be generated for every document certified/ attested by Practising Chartered Accountants and registered with the UDIN portal- https://udin.icai.org/ . The said portal offers the facility to various Regulators/Banks/Authorities/Other Stakeholders to check the authenticity of the documents certified by Practicing Chartered Accountants who are registered on the said portal. It would help in tracing of forged/wrong documents prepared by any third person in the name of Chartered Accountant. As a person other than Chartered Accountant will not be able to upload the documents on the said portal.
In order to reinforce the objective and to ascertain legal and proper chartered accountancy in India, ICAI has mandated the requirement of UDIN with effect from 1st January, 2019.