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

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

ICMAI Hopeful with Revised Income Tax Bill 2025

ICMAI and its members are waiting release of revised Income Tax Bill 2025 to see if Cost and Accountants will be included in definition of Accountant. Inclusion of CMAs in definition of 'Accountant' will aid cost accountants to perform tax audits in India. Currently, only Chartered Accountants are allowed to perform tax audits.

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

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

The revised version of Income Tax Bill 2025 is expected to be out soon. However, there is no official confirmation on change in Accountant definition. If the definition remains unchanged, CMAs will continue to be ineligible for tax audit work under the Income Tax Act. The final IT Bill will decide whether CMAs can expand their role in tax-related assignments or face continued restrictions.

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