Cost Accountants Push for Tax Audit Rights Amid Opposition
Cost accountants are equipped to conduct tax audits, a senior official of the Institute of Cost Accountants of India (ICMAI) stated on Thursday. This assertion strengthens their case for being recognized as accountants under the provisions of the new Income Tax Bill, despite opposition from the chartered accountants’ body.
In a coordinated effort, top institutes representing company secretaries and cost accountants have recently approached the government, advocating for the inclusion of their members as accountants under the Income Tax Bill. Such a move would enable them to perform lucrative tax audits, which are presently the exclusive domain of chartered accountants.
However, Institute of Chartered Accountants of India president Charanjot Singh Nanda voiced strong opposition to this demand. He insisted that audits, including those related to taxes, should remain solely within the purview of chartered accountants, who are specifically trained for these tasks.
The ICMAI, boasting approximately 100,000 members, has officially submitted a memorandum to the Select Committee of the Lok Sabha, which is currently reviewing the Income Tax Bill, 2025. They are seeking formal recognition as accountants.
The demand for inclusion in the definition of accountants is supported by our extensive expertise gained through the CMA (cost and management account) curriculum, which encompasses all areas of income tax, GST, accounts, banking, finance, cost and management accounting, auditing, IT, and more,” remarked ICMAI president Bibhuti Bhusan Nayak during a press conference on Thursday.
Nayak further emphasized that cost accountants are recognized as ‘internal auditors’ under the Companies Act 2013. This status affirms their significant understanding of internal controls, risk management, as well as accounts and finance.