The Institute of Cost Accountants of India (ICMAI) has submitted a memorandum to the Select Committee of Lok Sabha, urging the inclusion of “Cost Accountant” in the definition of “Accountant” under Section 515(3)(b) of the proposed Income-Tax Bill, 2025.
Welcoming the introduction of the Income-Tax Bill, 2025, on February 13, ICMAI lauded the government’s efforts to simplify India’s decades-old direct tax framework, aiming to reduce litigation and improve compliance. The Institute emphasized its commitment to contributing toward the vision of Viksit Bharat@2047 and highlighted the crucial role of Cost Accountants in taxation and compliance.
ICMAI argued that Cost Accountants possess specialized expertise in Income Tax, GST, Accounts, Banking, Finance, Cost & Management Accounting, Auditing, and Corporate Laws, among other areas. The Institute emphasized that CMAs are already recognized as Internal Auditors under the Companies Act, 2013, and authorized to conduct statutory financial audits under various state legislations.
The memorandum also pointed out that Tax Audits under the current Income Tax Act are not full-fledged audits but a compilation of financial data, a task CMAs are well-equipped to handle. It cited a Supreme Court judgment (Civil Case 29 of 2021) to support its claim.
ICMAI asserted that recognizing Cost Accountants as “Accountants” under the Income-Tax Bill, 2025, would enhance business representation, foster inclusivity, and leverage their specialized skills for efficient tax administration, ultimately protecting government revenues.
The Institute, established under the Cost Accountants Act, 1959, operates under the Ministry of Corporate Affairs and is a key member of international accounting bodies, including IFAC, CAPA, and SAFA.
The proposal is expected to be examined by the Select Committee as part of the legislative review process.
