7 Reasons why Cost Accountant (CMA) should be included in definition of “Accountant” in the Income Tax Bill, 2025
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 :
1. 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.
2. 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).
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
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.
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About Author : CMA Harshad S. Deshpande, a seasoned Cost Accountant with over 20 years of professional experience, holds multiple prestigious qualifications, including M.Com, FCMA, CS, CISA (USA), CIMA (UK), IP, RV, ID, DFA, and SA. He is a practicing Cost Accountant, Insolvency Professional, Registered Valuer, and Social Auditor. Recently elected as a Central Council Member of ICMAI, CMA Deshpande continues to contribute significantly to the profession.
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I think a very good idea.. CAs should not have any problem and CAs should be ready to do Cost Audit and Secretarial Audit so as to encourage fair competition and in public interest.. CAs need not justify themselves for any work as their curriculum and training is self explanatory..Let’s have all ideas with open heart
I think a very good idea.. CAs should not have any problem and CAs should be ready to do Cost Audit and Secretarial Audit so as to encourage fair competition and in public interest.. CAs need not justify themselves for any work as their curriculum and training is self explanatory..Let’s have all ideas with open heart..
If CMA want to do the work which is designated for CA’s only, why to study CMA, just go for CA and clear CA. Bcom hons people are also studying direct and indirect tax that doesn’t mean that they can do the job as good as CA’s can. Study CA, complete CA then ask for the job and now a days passing percentage is high as well and in that also if you can’t clear CA then you are not deserving. simple and clear
Do the IRS officer have CA Qualification? Answer is No.
it’s a High time to think about national interest than CA institute interest.
You people appear CA exam and show your strength.
Why try to back door entry.
How many of you attempted CA and fail to clear. Take the statistics.
For all CA dropouts CMA is backup plan.
It is not a rocket science…….
pass % of CPA US , ACCA and CPA Australia is much higher……it’s does not mean they don’t have quality…..
There is nothing evident that only CA can do Tax work and others not…
more ever majority of accountant work is done by Softwares…..
accountancy and taxation can be expertise by experience……not merely a memory based exams…even an average student can pass CA exam…
CMA should be included in. the definition of accountant
Exactly, CMA deserves to serve nation as whole for Income Tax also
Excellent based demand, CA and CMA at par treated in all activities of finance related matter including statutory audit, tax audit and other all work.
as an professional student of of CMA intermediate of our respective and prestigious institute ICMAI ,not only train us to conduct only Cost Audit ,but I personally feel we can also conduct tax audit as we study Taxation (both Direct tax and Indirect tax)as per Income Tax Act in depth , in CMA intermediate and in CMA finals ,also CMAs have deep knowledge of cost accounting, financial management, and compliance, making them capable of handling tax audits effectively and i beleive in equal opportunities with out any kind of discrimination ,with power of Tax Audit given to CMA’s there will be fair and healthy competition in the market ,and make the tax services more transparent and valuable ,due to fair competition, So I request humbly to give the authority and power to CMA’s to conduct tax audit , economy is becoming large day by day ,we also want chance to enhance our career and explore more opportunities with out any professional discrimination ,and experience fair competition ,even we need competition in order to grow India economy ,more the competition increases, more the country will develop because due to increase competition everyone will try their best and add more value to their services ,when they will conduct Tax audit ,and Everyone must be given equal opportunity ,this is all I want to share my ,regarding CMA’s can conduct tax audit and I fully support CMA Harsad de pandey sir on inclusion of CMAs in the definition of accountant in the Income Tax Bill introduce recently and the clause that CMA must be given the authority to conduct Tax audit , Regards
So CAs should also be allowed cost audit functions.
toh statutory audit bhi CMA and CS kre bade ayee hame batte ye baat foundation bale nhi smajeye hame abh
we have not told anything to you people when ICAI requested CBIC to include CA’s for Excise Audit u/s 14A &14 AA,a domain exclusive to CMA’s ,we chose dignity over discord ,unlike what could have been said to the CA’s for taking a CMA course
“CMAs are the backbone of India’s economic growth, and it’s high time they receive the recognition they deserve! Let’s fight for our rights and demand equal opportunities. Thank you sir, CMA Harshad S. Deshpande, for being a strong voice for our profession! #CMARights #ICMAI”
Here’s a possible comment:
“CMAs are the backbone of India’s economic growth, and it’s high time they receive the recognition they deserve! Let’s fight for our rights and demand equal opportunities. Thank you sir, CMA Harshad S. Deshpande, for being a strong voice for our profession! #CMARights #ICMAI”
Yes Bring parity between CMA and CA by including CMAs in Accountant definition of IT Act
CMA should must be included in accountant definition.
Please endorse it to PMO and directly to FM Mrs. Nirmala Sitaraman.
Mr. Harshad has articulated well the case for inclusion of CMAs in the definition of accountant in the Income Tax Bill introduced recently. The arguments are well founded. AI tools will proliferate making the life of all high-end professionals vulnerable to earn a living. The inclusion will pave the way for all 3 professions to be on a level playing field. Whoever is AI first on merit can grab the opportunity from the clients by showing their calibre.