Post 3: Companies Exempt from XBRL Filing – Who Gets a Pass?

As a practicing CA specializing in XBRL filing, one of the most common queries I receive is: “Are we required to file in XBRL, or are we exempt?”

Let’s break it down in this post. 🧾✅

Not all companies fall under the mandatory XBRL filing requirement issued by the Ministry of Corporate Affairs (MCA). While larger entities are covered under mandatory norms, some categories are clearly exempted from filing financial statements in XBRL format.

Here’s who gets a pass 🎟️ under the current regulations:

🚫 Companies Exempt from XBRL Filing under MCA norms:

1️⃣ Small Companies

📉 As per the Companies Act, 2013, small companies — defined by thresholds on paid-up capital (≤ ₹4 crore) and turnover (≤ ₹40 crore) — are not required to file in XBRL format.

✅ If your company fits these limits and doesn’t fall under other mandatory categories, you’re exempt.

2️⃣ Banking Companies

🏦 As per MCA Circulars and Notifications, companies involved in banking operations are excluded from XBRL filing. Their financial reporting is governed by RBI norms.

3️⃣ Insurance Companies

🛡️ Companies regulated by IRDAI (Insurance Regulatory and Development Authority of India) are not covered under MCA’s XBRL filing mandate.

4️⃣ Non-Banking Financial Companies (NBFCs)

💼 Certain NBFCs are also exempt. Unless they meet other thresholds (turnover/capital) or are listed, they aren’t required to file XBRL.

5️⃣ Power Sector Companies (in some cases)

⚡ Some power companies may be excluded due to their specific regulatory framework and sector classification, subject to notifications.

📌 Important Note: If any of the exempt companies voluntarily want to file in XBRL for improved transparency or due to internal policy requirements, they may still opt-in.

🔜 What’s Next?

In the upcoming post, we’ll dive deep into:
📂 Documents required for XBRL filing – what you need to prepare in advance to ensure smooth uploading and validation on MCA portal.

Stay updated and file right!

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