NEW DELHI: A senior official from the Institute of Cost Accountants of India (ICMAI) stated that cost accountants are capable of conducting tax audits. He argued that, under the new Income Tax Bill, these professionals should be recognized as accountants. This has drawn sharp opposition from the chartered accountants’ body the Institute of Chartered Accountants of India (ICAI). This clash marks a significant turning point in tax audit responsibilities.
In a recent update, the Institute of Cost Accountants of India (ICMAI) and the Institute of Company Secretaries of India (ICSI) appealed to parliament to include their members in the definition of ‘accountant’ under a newly introduced Income Tax Bill, 2025.
The ICAI President, Charanjot Singh Nanda- Only chartered accountants in practice are qualified to perform tax audits. Audit is a serious responsibility that should be handled by professionals.
The ICAI President pointed to two major rulings—one from the Supreme Court and another from the Delhi High Court—that confirm only chartered accountants hold the exclusive authority to conduct audits.
He also clarified that ICAI has no issue with cost accountants performing tax representation work before the income tax department.
