The Lok Sabha Select Committee reviewing the draft Income-Tax Bill, 2025 has not favoured altering the definition of 'accountant', maintaining that only Chartered Accountants (CAs) with a valid certificate of practice will be recognized under the law.
This decision comes despite repeated appeals from professional bodies representing Cost Accountants and Company Secretaries, who expressed concerns about their continued exclusion. The Institute of Company Secretaries of India (ICSI) had specifically objected to the proposed definition, calling it discriminatory.
According to the panel's recommendations, the term 'accountant' will remain aligned with the Chartered Accountants Act, 1949, which excludes cost and company secretaries from its purview.
The committee submitted its report to the Speaker on Wednesday and suggested several changes to the draft bill, particularly in the definition of associated enterprises, discovery procedures and powers of income-tax authorities related to evidence production. However, it did not favour expanding the definition of accountant.
Sources say the committee aimed to streamline the bill's language and enhance legal clarity rather than propose sweeping changes. It is also believed to have recommended an additional clause under Section 246, granting income-tax authorities powers similar to civil courts under the Code of Civil Procedure, 1908, in cases involving legal suits.
The bill is expected to be taken up for consideration during the Monsoon Session of Parliament, starting July 21, 2025, after Cabinet approval.
The reaffirmed definition marks a significant setback for the Cost Accountants and Company Secretaries, as it narrows the scope of professionals eligible to represent taxpayers under the revised tax regime.
Also Read: Lok Sabha Select Committee Proposes Changes to Income Tax Bill, 2025
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