Income Tax Bill 2025 to be Revised; ICMAI Hope for Recognition of CMA in Tax Audit Roles

FM Nirmala Sitharaman will introduce the revised Income Tax Bill 2025 soon. The CMA community awaits clarity on their inclusion in the definition of ‘Accountant’ in the forthcoming Income Tax Bill. This will determine their eligibility to perform tax audits.

ICMAI Hopeful with Revised Income Tax Bill 2025

The Institute of Cost Accountants of India, commonly known as ICMAI,  and its members are awaiting the release of the revised Income Tax Bill 2025 to see if Cost and Accountants will be included in the definition of “Accountant”. Inclusion of CMAs in the definition of 'Accountant' will bring in an eligibility to perform tax audits in India. Currently, on Chartered Accountants are allowed to perform tax audits. The earlier draft of the Bill, released in February 2025, did not list Cost Accountants under this definition, effectively excluding them from performing tax audits.

This exclusion has raised concerns within the CMA community, as it restricts their scope of work in taxation and compliance. CMA professionals have expressed worry that the continued dominance of CAs in tax audits will limit their opportunities, despite being qualified to perform the task.

Since the February draft, ICMAI has been making representations to the government, highlighting the role and expertise of CMAs in financial reporting, compliance, and cost management, and pressing for their recognition in tax audit work alongside chartered accountants.

According to ICMAI, the inclusion of CMAs in the “Accountant” definition aligns with the broader objective of utilising the skills of multiple professional groups in tax compliance. The institute has argued that CMAs have the required qualifications and statutory recognition under the Cost and Works Accountants Act, 1959, and should not be excluded from tax audit responsibilities.

The revised version of the Income Tax Bill 2025 is expected to be tabled soon. However, there is no official confirmation yet on whether CMAs will be included for tax audit roles or not. Many members of the profession remain hopeful that the new draft will address their concerns.

If the definition remains unchanged, CMAs will continue to be ineligible for tax audit work under the Income Tax Act, a move that ICMAI believes would narrow the talent pool available for such statutory functions. The final wording of the Bill will decide whether CMAs can expand their role in tax-related assignments or face continued restrictions.

Read More:

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• CMA June 2025 Verification of Answer Papers Begins at icmai.in; Last Date Sep 10