Income Tax Bill 2025: ICMAI Calls for Inclusion of CMAs in ‘Accountant’ Definition

The new Income Tax Bill 2025, tabled on February 13, 2025, has sparked controversy by excluding Cost Accountants (CMAs) from the definition of 'Accountant' for tax audits. Read the complete story here.

ICMAI Calls for Inclusion of CMA Professionals in ‘Accountant’ Definition

Finance Minister, Nirmala Sitharaman, tabled the Income Tax Bill 2025 in the Lok Sabha on February 13, 2025. The new bill, set to replace the Income Tax Act of 1961, will take effect from April 1, 2026. The Bill represents a significant revision of the existing tax system. The 622 page bill introduced significant changes to streamline and modernise tax administration. Key changes in the bill include the introduction of a “tax year” concept, the preservation of the old tax regime with current deductions, and the development of a new tax regime with updated rates.

However, the bill has sparked controversy due to the exclusion of Cost Management Accountants (CMAs) from the definition of 'Accountant' for tax audit.

The Institute of Cost Accountants of India (ICMAI) has been advocating for the inclusion of CMAs in the definition of 'Accountant' for over five years. Despite previous assurances, the new bill retains the definition from the 1961 Act, which only includes Chartered Accountants (CAs) under the term ‘Accountant’. This decision has been met with disappointment and frustration among CMA professionals.

ICMAI President Pushes for Inclusion of CMA in New Income Tax Bill

ICMAI President, Biswarup Basu, expressed his concerns in a recent press release, 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. This is contrary to the assurance given to us that a level playing field will be provided to all professionals. Your Council is in touch with policymakers and a road map will be shared with you for your valuable inputs. This is the time when we should exhibit our professional competence. I assure you that we will not leave any stone unturned to represent our profession strongly and push for our legitimate position in the statute.

On the other hand, the Institute of Chartered Accountants of India (ICAI) has welcomed the new bill. ICAI President, Charanjot Singh Nanda, praised the bill's potential to simplify tax structures and promote economic growth. "The new Income Tax Bill is a significant step forward in simplifying the tax system and fostering employment and MSME growth," he said.

The debate continues as both CMA and CA professionals await further developments. The ICMAI Council is actively working with policymakers to address the issue and ensure that CMAs receive their rightful recognition in the statute.

Read More: CMA June 2025 Exam Dates Released at icmai.in