ICMAI expresses Disappointment Over Exclusion from Definition of 'Accountant' in New Income Tax Bill, 2025
Earlier this year, Bharuch MP and BJP leader Mansukhbhai Dhanjibhai Vasava wrote to the Chairman of the Select Committee to include CMA within the ambit of Accountant under the Act.
The Institute of Cost Accountants of India (ICMAI) has formally expressed its disappointment over the government’s decision to exclude Cost Accountants from the definition of “Accountant” under the proposed Income Tax Bill, 2025. ICMAI has issued a Press Release dated 24.07.2025 expressing its disappointment following the release of the final report submitted by the Lok...
The Institute of Cost Accountants of India (ICMAI) has formally expressed its disappointment over the government’s decision to exclude Cost Accountants from the definition of “Accountant” under the proposed Income Tax Bill, 2025.
ICMAI has issued a Press Release dated 24.07.2025 expressing its disappointment following the release of the final report submitted by the Lok Sabha Select Committee, affirming that only Chartered Accountants (CAs) shall be eligible to conduct tax audits under the new tax framework.
Earlier this year, Bharuch MP and BJP leader Mansukhbhai Dhanjibhai Vasava had submitted a memorandum on behalf of ICMAI to the Chairman of the Select Committee, Baijayant Panda. In the memorandum, Dhanjibhai Vasava strongly urged the Committee to amend Section 515(3)(b) of the draft Bill to include Cost Accountants under the term “Accountant.”
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The submission further emphasized the significant role played by CMAs in the areas of cost analysis, financial efficiency and indirect taxation, highlighting that their inclusion would strengthen the country’s financial reporting ecosystem and those involved in the same.
However, the representation made by ICMAI was to no avail as the Select Committee, in its July 22, 2025 report upheld the existing stance that only Chartered Accountants are qualified to carry out tax audits.
The Select Committee justified the sole inclusion of chartered accountants within the term of “accountants” citing specialized training in audit procedures, tax law and accounting standards that they receive during study, as compared to other professional bodies including Cost Accountants and Company Secretaries.
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The Select Committee further noted that each professional body has its own domain - with cost audits being the exclusive domain of CMAs while tax audits remained the exclusive domain of Chartered Accountants under both the current and proposed laws.
Reacting to this outcome, the ICMAI in its official communication conveyed that it is “deeply disheartened” by the decision.
ICMAI affirmed that it continues to disagree with the decision and is committed to engaging further with the government and regulatory authorities to secure rightful recognition for Cost Accountants within the income tax framework. The Institute also assured its members and stakeholders that it will pursue every legitimate avenue to ensure that the contributions of CMAs are acknowledged within the Income Tax Domain.
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As the Income Tax Bill, 2025 strides towards finalization, ICMAI’s latest statement marks another chapter in the continuing debate over professional inclusivity and the recognition of diverse financial disciplines within India’s evolving tax ecosystem.
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