The Institute of Cost Accountants of India (ICMAI) has submitted a memorandum to the Select Committee of Lok Sabha, requesting the inclusion of "Cost Accountant" in the definition of "Accountant" under Section 515(3)(b) of the Income-Tax Bill, 2025. The move aims to enhance representation, inclusivity, and the utilization of the specialized skills of Cost Accountants in taxation and compliance.
The Income Tax Bill, 2025, introduced on February 13, 2025, seeks to simplify India's decades-old direct taxation framework by streamlining provisions, eliminating obsolete references, and fostering voluntary compliance. ICMAI believes that including Cost Accountants in the definition of "Accountant" aligns with the government's vision for ease of doing business and structural tax reforms.
Rationale Behind the Demand
ICMAI underscores that the CMA curriculum extensively covers Income Tax, GST, Auditing, Banking, Finance, Cost & Management Accounting, IT, and Strategic Risk Management. Additionally, Cost Accountants (CMAs) are recognized as Internal Auditors under the Companies Act, 2013 and are authorized to conduct Statutory Financial Audits in certain states. Their expertise in micro-analysis and tax compliance makes them well-suited for roles in the evolving tax regime.
The Institute also pointed out that under the current tax framework, Tax Audit under the Income Tax Act is not an audit in its strictest sense but rather a compilation of tax-related financial data. A Supreme Court ruling (Civil Case 29 of 2021) affirmed that CMAs are equally capable of compiling tax-related financial statements in the prescribed format.
Implications for Taxation & Compliance
If accepted, this amendment will strengthen the role of CMAs in tax compliance, reduce litigation, and improve tax governance in India. It will also provide businesses with a broader choice of professionals for tax-related services, furthering the government's Vision of Viksit Bharat @2047.
Official copy of the Press Release is as follows
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