Institute of Cost Accountants of India releases Memorandum to include “Cost Accountant” in the Definition of ‘Accountant’ under Income-Tax Bill, 2025.
Institute of Cost Accountants of India welcomed the Income Tax Bill 2025, introduced on 13th February 2025. ICMAI acknowledges it as a significant milestone to simplify India’s six-decade-old direct taxation structure. The Bill aims to streamline provisions, eliminate obsolete references, establish a more concise & transparent legal framework to reduce litigation and improve voluntary compliance. This clearly reflects the resolve of Govt. to introduce fundamental structural changes to achieve the goal of ease of doing business.
Institute also expressed its determination to play active role effectively in realizing the Vision of Viksit Bharat@2047. In this context, the Institute has submitted a Memorandum to the Select Committee of Lok Sabha to Examine the Income-Tax Bill, 2025, requesting the inclusion of “Cost Accountant” in the definition of “Accountant” under Section 515(3)(b) of the Income-Tax Bill, 2025. This will ensure greater representation in the business scenario, inclusivity and utilization of the specialized skills of Cost Accountants in taxation and compliance-related activities under the evolving tax regime.
The demand for inclusion in the definition of Accountants is backed by our Expert Knowledge through CMA Curriculum that extensively covers all areas of Income Tax, GST, Accounts, Banking Finance, Cost & Management Accounting, Auditing, Information Technology. Strategic Risk Management, Corporate Laws, Ethics, etc. followed by international examination standards. CMAS are recognized as Internal Auditors under the Companies Act 2013, thus acknowledging their expert knowledge in the domain of internal controls, risk assessment and deep understanding of accounts & finance. CMAs are even authorized to conduct Statutory Financial Audit under various State Legislations. CMAs are experts of micro analysis that gives them a unique advantage to work in Income Tax Domain to protect any loss to the exchequer. Furthermore, the Tax Audit under the existing Income Tax Act is actually not an audit; it is merely compilation of tax related data from the already audited financial statements. Ratio given at Para 27 by the Honorable Supreme Court in civil case 29 of 2021 refers. CMAs are equally capable of compiling such data as per the prescribed format. Therefore, CMAs should be included in the definition of “Accountant” under Section 515(3)(b) of the Income-Tax Bill, 2025.