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Audit is forte of CAs, says ICAI amid sister institutions seeking accountant status in I-T Bill

With sister institutions representing company secretaries and cost accountants seeking accountant status for their members under the new Income Tax Bill, apex body ICAI on Wednesday said audit is the forte of chartered accountants and that the issue will be taken up before the government's coordination committee.

The Institute of Company Secretaries of India (ICSI) and the Institute of Cost Accountants of India (ICMAI), both set up under Acts of Parliament, have demanded that their members be treated as accountant in the bill.

All the three institutes -- ICAI, ICSI and ICMAI -- have been set up under Acts of Parliament and come under the corporate affairs ministry.

Responding to queries on the issue, ICAI President Charanjot Singh Nanda on Wednesday said it is keen to maintain a healthy relationship with the sister institutes.The Institute of Chartered Accountants of India (ICAI) has around four lakh members.

"Audit work can be done only by chartered accountants, the chartered accountants in practice... we do audit. Audit is a serious business which can be done only by people doing so," he said.

Nanda, who took over as the institute's President on February 12, also mentioned about at least two judgements, one each by the Supreme Court and the Delhi High Court, to emphasise that audit works are done by chartered accountants.

Stressing that tax audits is the forte of chartered accountants, he said the issue will be taken up at the coordination committee.

The committee, chaired by the corporate affairs secretary, has Presidents and Vice Presidents of all the three institutes as members.

"I want to again re-emphasise the fact that audit is the forte of chartered accountants... tax audits are the preserve of chartered accountants... audit is the responsibility that has been entrusted to us by the Parliament," Nanda said.

ICSI and ICMAI have sought that company secretaries and cost accountants be included in the definition of 'accountant' as outlined in Section 515(3)(b) of the Income Tax Bill, 2025.

The bill, which seeks to achieve tax certainty by minimising the scope of litigation and fresh interpretation, was introduced in the Lok Sabha last week and was referred to a 31-member select committee.

The panel is mandated to submit its report by the first day of the Monsoon Session of the Parliament. The ongoing Budget Session will conclude on April 4 and the Monsoon session may commence in the third week of July.

Source of Info - livemint.com

 


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Author:

TaxReply


Feb 20, 2025

Comments


Sir, is there any chance that CMA & CS will also be included as Auditors ?
By: Sakshi Sharma
Feb 20, 2025
↳
Replied to Sakshi Sharma
Yes . They should be included in the included in the definition of Accountants for better corporate governance .
By: Sudipto Mazumdar
Feb 20, 2025
↳
Replied to Sakshi Sharma
NO,
You need to clear CA exam first
By: Rrr
Feb 21, 2025
↳
Replied to Sakshi Sharma
ICMA and ICSA are not the sister concern of ICAI.

They are separate entity and have established by Parliament under different ACT.

As per company ACT, CAs are allowed to do Finance Audut, CMAs are allowed to do Cost Audit, CSs are allowed to do secretarial Audit.

Like GST ACt, Income Tax is having it's separate Act, which is not included in COmpany Act.

As CMAs are allowed to do GST audit and so many audit s are allowed like GST , similarity CMA s quite efficient to do Income Tax Audit.
So Govt should allowed them for Income Tax Audit.
So CAs should not interfere in this matter.
By: Cma Tarun Ray
Feb 22, 2025
↳
Replied to Sakshi Sharma
As the cost accountants are accountants as the name suggests they should be included in the definition of accountants
By: Ca Sridipta Nanda
Feb 22, 2025
↳
Replied to Sudipto Mazumdar
How it will provide better governance kindly explain?

I believe mismanagement will increase.
Books will not close properly.

I am not saying they are inefficient but it's not their forte.

If they want to do they can complete CA first for better understanding of subject and practical experience.
By: Deep S Gupta & Co.
Feb 20, 2025
↳
Replied to Deep S Gupta & co.
What kind of argument is this?CMA is equally qualified as far as IT goes. CA has earned disrepute n NFRA is born. How have u forgetten so early what PM Modi advised in Talkatora Stadium on your face. ? Stop what u r doing for six decades
By: S.k.agarwal
Feb 20, 2025


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