The Institute of Cost Accountants of India (ICMAI) has submitted a comprehensive 160-page memorandum to the Lok Sabha-appointed Select Committee, chaired by Baijayant Panda, advocating for the inclusion of “cost accountant” in the definition of “accountant” under the Income Tax Bill 2025.
“Inclusion of ‘cost accountant’ will enable us to sign tax audit reports under the Income Tax law, ensure greater representation in the business scenario, bring about inclusivity and utilisation of the specialised skills of Cost Accountants in taxation and compliance related activities under the evolving tax regime,” Bibhuti Bhusan Nayak, President, ICMAI said here on Thursday.
He asserted that cost accountants are as well equipped as chartered accountants in conducting tax audits. Nayak felt that cost accountants can play an effective role in realising the Vision of Viksit Bharat@2047 if the profession were to be included in the definition of “accountant” under the income tax bill.
“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,” he added.
Nayak highlighted that the earlier attempt of Government to come up with a new Income Tax law — Direct Taxes Code 2013–too had included “cost accountant” within definition of “cost accountant”.
ICMAI top brass saw no merit in CA Institute’s contention that the latter had an exclusive right to tax audit. CAs are enjoying a privilege and it is not a “right” conferred by Parliament as being portrayed in certain quarters, they added.
“We are not making any demand to the government. We are only requesting it to consider us and convey that we are equally equipped to offer tax audit services like a CA. Our members are already involved in related taxation work in companies although we are not part of the definition,” Nayak added.
Asked how ICMAI will respond to the CA Institute’s plan to take up the matter before the MCA appointed Coordination Committee, Nayak said this issue as such does not fall within the agenda or scope of the monitoring committee. “It is for MCA to decide if it really wants to discuss it in coordination committee. The Bill has already been introduced in Parliament,” Nayak told businessline.
In its memorandum, ICMAI has highlighted that globally, cost accountants are treated at par with other accounting professionals. South Asian and European countries recognise cost accountants as both ‘accountants’ and ‘auditors’.