The New Income Tax Bill 2025 was introduced in the Lok Sabha on 13th February 2025. The purpose of this bill is to simplify the complex Income Tax Act of 1961. The primary objective mentioned by the Minister is to reduce disputes / litigation involving the tax system and bring Ease of Compliance.
ICMAI as well as ICSI have represented their inclusion quoting industries and businesses will require more qualified professionals for taxation and compliance purpose preventing dependency on any single profession and ensuring a competitive, quality-driven tax ecosystem.
Lets look what could be points which may be relevant for such inclusion :
Affiliated with IFAC
ICMAI is recognised an accounting body formed by Act of Parliament. It’s affiliated to IFAC (International Federation of Accountants), CAPA, SAFA. Further Cost Accountants are authorized to be an Auditor as per definition in section 2 of CWA Act.
Coverage of Tax laws in Syllabus
Curriculum of CMA extensive coverage of Income Tax Law at the Intermediate Stage in PAPER 7: Direct and Indirect Taxation (DITX) & at Final Stage PAPER 15: Direct Tax Laws and International Taxation (DIT).
Similar Roles in Industries
CMAs perform similar roles as accountants, including:
- Financial planning
- Financial analysis
- Budgeting
- Forecasting
- Decision-making
These roles demonstrate the similarities between CMAs and accountants.
Disciplinary Mechanism
ICMAI has a disciplinary mechanism in place which is required to keep check on the auditing professionals. Further, it has prescribed code of conduct, Peer review mechanism as well Quality Review Board (QRB) to ensure quality auditing services are rendered by its members.
Recommendation by Parliamentary Committee
Recommendation by the Parliamentary Committee to include Cost Accountants in the definition of ‘accountant’ in its 49th Report of 15th Lok Sabha, relating to “The Direct Taxes Code Bill, 2010” as well as in “DTC, 2013” & again in 122nd Report of the Department Related Parliamentary Standing Committee on Commerce on Ease of Doing Business dated 21st December, 2015.
Promotes Healthy Competition
Allowing CMA would ensure healthy competition which is very much required in open economy. It will definitely benefit the tax administration system as well as the assesses, especially the MSME assesses.
Value added Auditing Service
CMA with their techno commercial skills will be able to provide value added auditing services apart from regular compliances checks which may bring more effectiveness in Tax administration system. Further, increased availability of professionals will ensure timely compliances, avoiding extensions, & competitive pricing of auditing services which will be benefiting both Tax Administration as well as Taxpayers.
Prominently Recognised Body
Recognition as at par under all other Statutes-
- Goods and Services Tax [GST]
- Companies Act as an Internal Auditor (sec 138)
- Co-operatives Societies Act in States like Karnataka, Maharashtra, HP, West Bengal
- Tax Return Preparer (Amendment) Scheme, 2018
- Erstwhile Central Excise Act & Service Tax Act
- Income Tax Act as Authorised representative & Audit of Inventory Valuation (Sec 142 A)
- CMAs are recognized by statutory bodies for professional services in RBI, IRDAI, SEBI, IBA, MCA, IBBI, CCI, NPPA, TRAI, CERC, IFSCA, NABARD, NSDL, Ministry of Agriculture, Ministry of Commerce and Industry, Ministry of Textiles and many others.
Our Prime Minister Narendra Modi ji has set up target of 5 trillion economy by 2025 and robust tax mechanism would play vital role in ensuring we achieve it. His vision of Viksit Bharat 2047 would mean inclusive growth for everyone not limiting to certain class.
CMA professionals would definitely be an active participant in achieving the milestones set up by our leadership. As we always say its TEAM (Together Each Will Achieve More) effort. In order to encourage fair competition and in public interest such inclusion of CMAs are paramount for the growth of the nation.
Thanks for Reading!!
Credits:
CMA Harshad Deshpande (Author),
CA Shweta Sharma (Writer)
Gaurav Verma (Editor)
