ICMAI demands inclusion of cost accountants as 'accountant' in new I-T Bill
Citing their expertise in taxation, auditing, and finance, the institute with 1 lakh members, submitted a memorandum to the Lok Sabha Select Committee. ICMAI highlights CMAs' recognition as internal auditors under the Companies Act and their role in financial audits under state laws. The institute emphasizes CMAs' ability to prevent revenue loss and improve compliance
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New Delhi: The Institute of Cost Accountants of India (ICMAI) on Thursday urged the government to include cost accountants under the definition of 'accountant' in the Income Tax Bill, 2025. The institute said it has submitted a detailed memorandum to the Select Committee of Lok Sabha set up to examine the Income Tax Bill, 2025, requesting the inclusion of 'cost accountant' in the definition of 'accountant'.
ICMAI, set up under an Act of Parliament, has about 1 lakh members. "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 and management accounting, auditing, IT, among others," ICMAI President Bibhuti Bhusan Nayak said while talking to media here.
He further said CMAs are reconginsed as 'internal auditors' under the Companies Act 2013, indicating their expert knowledge in the domian of internal controls, risk management and deep understanding of accounts and finance. Nayak said CMAs are even authorised to conduct statutory financial audit under various state legislations. They are experts of micro analysis that gives them a unique advantage to work in income tax domain to protect any loss to the exchequer, he added.
Council Member Rajendra Singh Bhati said the tax audit under the existing Income Tax Act is actually not an audit and it is merely compilation of tax-related data from the already audited financial statements. ICMAI said the institute is determined to play its role effectively in realising the vision of Viksit Bharat. "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 513 (3) (b) of the Income Tax Bill, 2025," Nayak said.
He emphasised that this will ensure greater representation in the business scenario, inclusivity and utilisation of specialised skills of cost accountants in taxation and compliance-related activities under the evolving tax regime. The Institute of Company Secretaries of India (ICSI), too, has demanded that company secretaries be included in the definition of 'accountant' as outlined in Section 515(3)(b) of the bill. The bill, which seeks to achieve tax certainty by minimising the scope of litigation and fresh interpretation, was introduced in the Lok Sabha last week and was referred to a 31-member select committee. The panel is mandated to submit its report by the first day of the Monsoon Session of Parliament.
