No proposed Change to “Accountant” Definition in Income Tax Bill 2025 [Read Bill]

The Income Tax Bill, 2025, which seeks to replace the existing Income Tax Act, 1961, has been introduced in Parliament. Despite various speculations regarding amendments, the definition of “accountant” remains unchanged in the proposed law.

Under Section 515(3)(b) of the Income Tax Bill, 2025, an “accountant” continues to mean a Chartered Accountant (CA) as defined under Section 2(1)(b) of the Chartered Accountants Act, 1949, who holds a valid Certificate of Practice under Section 6(1) of that Act​.

Certain individuals and entities remain ineligible from being recognized as accountants, except for representing an assessee under sub-section (1):

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

Exclusions under Section 515(3)(b)

1. For Companies: Any person ineligible to be appointed as an auditor under Section 141(3) of the Companies Act, 2013.

2. For All Other Assessees:

• The assessee themselves (including partners in firms, members of an AOP, or HUF).
• Trusts and Institutions – Those covered under Section 355(h)(i) to (iv).
• Persons Authorized to Verify Returns under Sections 263 and 265.
• Relatives of the above-listed individuals.
• Employees or Officers of the assessee.
• Business Associates – Persons who have business relationships with the assessee as prescribed.
• Financially Interested Persons:
  • Holding securities in the assessee exceeding ₹1 lakh.
  • Having outstanding debts to the assessee above ₹1 lakh.
  • Providing guarantees exceeding ₹1 lakh for third-party debts.
• Individuals Convicted of Fraud within the past 10 years.

Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

With the definition unchanged, taxpayers must continue to engage chartered accountants to File tax audit reports, Verify financial statements, and Represent clients in tax matters. The current provisions will remain applicable for the assessment year 2025-26, reinforcing the government’s stance on maintaining professional exclusivity in tax compliance.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates