Cost Accountants Demand Recognition in India’s Tax Framework
The Institute of Cost Accountants of India (ICMAI), urged the government to include ‘cost accountant’ in the definition of “accountant” under Section 515(3)(b) of the Income Tax Bill, 2025
Hyderabad:The Institute of Cost Accountants of India (ICMAI), urged the government to include ‘cost accountant’ in the definition of “accountant” under Section 515(3)(b) of the Income Tax Bill, 2025. The demand, submitted through a memorandum to the Lok Sabha select committee, seeks greater representation for Cost and Management Accountants (CMAs) in taxation, compliance, and financial planning under India’s evolving tax framework.
The ICMAI argued that cost accountants possess specialised expertise in tax compliance, financial analysis, and cost control, making them well-equipped to contribute to the new tax regime.
“Cost accountants are recognised as internal auditors under the Companies Act, 2013, and are authorised to conduct statutory financial audits under various state legislations. Our extensive curriculum covers income-tax, GST, auditing, corporate laws, banking, finance, and risk management, ensuring we are fully qualified to handle tax-related responsibilities,” said CMA Dr Lavanya Kanduri, chairperson, ICMAI-Hyderabad chapter. She added that excluding CMAs from the definition of “cost accountant” limited their role in the taxation sector despite their internationally recognised expertise.
The ICMAI argued that the tax audit process under the current Income-Tax Act was not an actual audit but a compilation of tax-related data from audited financial statements. The institute referred to Para 27 of the Supreme Court’s ruling in ‘Civil Case 29’ of 2021, asserting that CMAs were equally capable of performing this function.
