CMA Bibhuti Bhusan Nayak, President of the Institute of Cost Accountants of India (ICMAI), has publicly addressed the concerns of its members regarding the omission of “Cost Accountant” from the definition of “Accountant” in the newly introduced Income Tax Bill 2025. This exclusion has raised serious questions about the government’s commitment to providing a level playing field for all accounting professionals.
President Nayak’s message to ICMAI members acknowledges the discrepancy between the current bill and previous assurances given to the institute. He states that the ICMAI Council is actively engaging with policymakers to rectify this situation. The council is also developing a roadmap to address the issue, and this roadmap will be shared with ICMAI members soon, inviting their valuable input and participation in the advocacy efforts.
The President’s message emphasizes the crucial role of ICMAI members in demonstrating their professional competence during this critical juncture. He stresses the importance of showcasing the value and expertise that Cost Accountants bring to the financial landscape. This demonstration of professional strength, he suggests, will be instrumental in the ICMAI’s efforts to secure rightful recognition for its members within the new tax statute.
President Nayak has assured the ICMAI membership that the institute is committed to vigorously representing the profession and advocating for its rightful place in the legal framework. He has pledged that the ICMAI will explore all avenues to ensure that Cost Accountants receive the recognition they deserve under the Income Tax Bill 2025. The message conveys a sense of urgency and determination, underscoring the ICMAI’s commitment to its members’ professional interests.
Background:
The Income Tax Bill 2025 proposes significant changes to the existing tax laws. The definition of “Accountant” within the bill is crucial, as it determines who is authorized to perform certain accounting and auditing functions related to tax compliance. The exclusion of Cost Accountants from this definition has created uncertainty and concern within the profession. Cost Accountants play a vital role in various sectors, including manufacturing, where they specialize in cost management, analysis, and control. Their expertise is essential for businesses to make informed decisions regarding pricing, resource allocation, and profitability.
Impact of the Exclusion:
The omission of Cost Accountants from the definition of “Accountant” in the Income Tax Bill 2025 could have several negative consequences:
- Limited Scope of Practice: It could restrict the scope of professional practice for Cost Accountants, preventing them from performing certain tax-related functions that fall under the purview of a defined “Accountant.”
- Competitive Disadvantage: This exclusion could place Cost Accountants at a competitive disadvantage compared to other accounting professionals who are explicitly included in the definition.
- Reduced Recognition: It sends a message that Cost Accountants are not considered equivalent to other accounting professionals in the eyes of the law, potentially diminishing their professional standing.
- Impact on Businesses: Businesses relying on Cost Accountants for specialized cost management and tax-related advice could face challenges in ensuring compliance and efficient financial management.
ICMAI’s Strategy: The council is actively engaging with policymakers to present their concerns and advocate for the inclusion of Cost Accountants in the definition of “Accountant.”
EXTRACT OF MESSAGE FROM PRESIDENT, ICMAI ON TWITTER HANDLE
Dear esteemed members,
The Council of the Institute is fully seized with the issue of non-inclusion of ‘Cost Accountant’ in the definition of Accountant in the new introduced Income Tax Bill, 2025. This is contrary to the assurance given to us that a level playing field will be provided to all professionals. Your Council is in touch with policy makers and a road map will be shared with you for your valuable inputs. This is the time when we should exhibit our professional competence. I assure you that we will not leave any stone unturned to represent our profession strongly and push for our legitimate position in the statute.
Best wishes,
CMA Bibhuti Bhusan Nayak
President, ICMAI
if they choose to become financial auditors, why are they specialising in costing? isn’t costing the primary objective of ICMAI? Why are they so confused about their basic objective of very existence?
unfortunately CAs think that the concept of accounting has been created by them and they are owners of the same. let me tell you their lobby is so strong that they will never ever let cost accountants to come to limelight. Even Modi ji could not do anything (pun intended).
yet still we have the brouhohua of havjng competition laws and that supposedly our country is democratic. for almost Sixty years the Cost accountants have been fighting for their rights yet nothing has happened . ask a cost accountant, if Satyam had a cost accounting department, the fraud would not have happend and likewise many such frauds would not have happened. cheers!
Our opinion the cost accountant should be include in the accountant definition due CMA and CA equivalent course and same efficient and equivalent in finance professional in service sector. We also argued that, CA profession charged with misconduct and fraud in corporate sector as per NFRA, CBI, ED, Income tax, GST department reports. So, it is wise for govt and legislative to include in the accountant to CMA for the benefit of the country and public. The bill not includes CMA that is not a wise decesion and I think that decision maker should have wide knowledge about the country for future development. If only one professional allowed for this it will be monopolistic activity and seems policy makers have some personal interest on them not for country interest.