Professional bodies representing cost accountants and company secretaries have voiced concerns over their exclusion from the definition of “accountant” in the newly introduced Income Tax Bill 2025. The current draft of the bill recognizes only chartered accountants in this capacity, potentially limiting the roles of cost accountants and company secretaries in tax representation and compliance.
Dhananjay Shukla, President of the Institute of Company Secretaries of India (ICSI), emphasised the necessity of including company secretaries in the bill’s definition of “accountant.” He said, “To cater to this need of a large pool of qualified professionals who can ensure compliance with tax regulations, it is imperative that Company Secretaries be included in the definition of ‘Accountant’ in the Income Tax Bill 2025.” Shukla highlighted that the expertise of company secretaries in both direct and indirect tax laws positions them as valuable assets in India’s taxation framework. Their inclusion would expand the pool of qualified professionals, facilitating timely and efficient tax compliance.
ICSI’S VIEW
The ICSI has consistently advocated for the recognition of company secretaries within the taxation system. The institute believes that their inclusion in the definition of “accountant” would enhance the effectiveness of tax compliance and bring a broader perspective to financial governance. Shukla also noted that several parliamentary panels have previously recommended this inclusion, underscoring the profession’s significance in the financial and compliance sectors.
Similarly, the Institute of Cost Accountants of India (ICMAI) has expressed dissatisfaction with the bill’s current provisions. ICMAI President Bibhuti Bhusan Nayak addressed the issue on social media platform ‘X’ (formerly Twitter), stating, “The Council of the Institute is fully seized with the issue of non-inclusion of ‘cost accountant’ in the definition of Accountant in the newly introduced Income Tax Bill 2025.” Nayak emphasized that this exclusion contradicts prior assurances of a level playing field for all accounting professionals.
The ICMAI is actively engaging with policymakers to address this concern. Nayak assured members that the council is in continuous dialogue with relevant authorities and plans to share a strategic roadmap to advocate for the profession’s rightful recognition in the statute. He urged members to demonstrate their professional competence during this critical period and reaffirmed the council’s commitment to exhaust all avenues to ensure that cost accountants receive due acknowledgment in the legislative framework.
The exclusion of cost accountants and company secretaries from the definition of “accountant” in the Income Tax Bill 2025 has ignited a debate about the equitable recognition of various accounting professionals in India’s tax legislation. Both the ICSI and ICMAI are steadfast in their efforts to seek amendments to the bill, aiming for an inclusive definition that reflects the diverse expertise within the country’s financial compliance landscape.