BJP, Congress differ over tax audit roles in Income Tax Bill; FM assures review by select committee, ETCFO
In a key meeting with Finance Minister Nirmala Sitharaman this week, Chartered Accountant (CA) Nitin Bansal, the State President of the Bharatiya Janata Party (BJP) CA Cell in Haryana, strongly urged the government to maintain the exclusive role of Chartered Accountants in conducting tax audits under the proposed Income Tax Bill, 2025. After the meeting, Bansal spoke exclusively with ETCFO about his concerns about the inclusion of other professional bodies, and the response from the Finance Minister.
Bansal Requests Finance Minister to Uphold Chartered Accountants’ Expertise in Tax Audits
In his meeting with the Finance Minister, Bansal presented the case for maintaining the exclusive role of Chartered Accountants in tax audits. He emphasized that Chartered Accountants possess the unique skill set and comprehensive training required to handle tax audits, highlighting their extensive education and hands-on experience.
Tax audits are a critical function that require specialized knowledge, and Chartered Accountants have the in-depth understanding to carry out this responsibility effectively. Our rigorous training ensures that we provide the highest level of assurance and trust to all stakeholders involvedCA Nitin Bansal, the State President of BJP CA Cell in Haryana stated to Finance Minister
BJP’s CA Cell Firm Stand on Exclusive Tax Audit MandateDuring the meeting, Bansal also requested the Finance Minister to reject calls from the Institute of Company Secretaries of India (ICSI) and the Institute of Cost Accountants of India (ICMAI) to include their members in the definition of ‘accountant’ under the Income Tax Bill. While acknowledging the contributions of these professionals, Bansal stressed that they lack the necessary expertise in taxation to effectively manage tax audits.
Chartered Accountants have long been at the forefront of tax audits. Opening this space to other professionals would undermine the integrity of the process and erode the trust that investors place in financial reportingBansal explained.
Finance Minister’s Response to Bansal’s RepresentationFollowing the meeting, Bansal shared exclusively with ETCFO that Finance Minister Nirmala Sitharaman acknowledged the concerns raised by the BJP CA Cell. Bansal said the FM assured that the matter would undergo thorough scrutiny by the Select Committee, which is reviewing the Income Tax Bill.
The Finance Minister assured us that our concerns would be taken into consideration by the Select Committee. While no immediate commitment was made, the government is open to discussions and will carefully evaluate the matterBansal said.
Congress MP Deependra Singh Hooda Supports Company Secretaries’ InclusionIn contrast to the BJP’s position, Congress Member of Parliament Deependra Singh Hooda has voiced his support for including Company Secretaries (CS) in the definition of ‘accountant’ under the Income Tax Bill. Hooda has written to the Chairman of the Select Committee, advocating for the involvement of CS professionals in tax audits, citing their expertise in corporate governance and regulatory compliance. This development marks a growing division on the issue, with the BJP firmly backing Chartered Accountants for exclusive control over tax audits, while Congress appears open to broadening the scope to include other professionals.
The proposal in the Income Tax Bill, 2025 to allow professionals from ICMAI and ICSI to conduct tax audits has sparked a fierce debate. Is broadening the scope of tax audits necessary, or does it risk undermining the integrity of India’s specialized professional bodies? Here’s what experts had to say:
Next Steps: The Select Committee’s DecisionThe Select Committee will now review the proposed Income Tax Bill, with the matter of tax audits forming a key point of discussion. As the debate intensifies, the outcome of this review will have significant consequences for the future of tax audits in India. The decision will not only determine the role of Chartered Accountants but also influence the trust and integrity of the nation’s financial reporting framework. The eyes of the industry are now on the Select Committee as it prepares to make its final recommendation on this crucial issue.
Garg said that limiting tax audits to Chartered Accountants (CAs) alone does not fully utilise the expertise of other qualified professionals.
Growing Call for Broader Participation in Tax AuditsThe proposal to expand the definition of ‘accountants’ in the Income Tax Bill, 2025, has gained significant momentum, with professional bodies such as the ICMAI and ICSI throwing their support behind the move. These organizations have formally requested the government to include their members as eligible professionals to conduct tax audits.
In a memorandum submitted to the Lok Sabha’s Select Committee, ICMAI requested the inclusion of the term ‘Cost Accountant’ in Section 515(3)(b) of the Income Tax Bill. The bill, introduced by Finance Minister Nirmala Sitharaman in February 2025, aims to overhaul India’s direct taxation system by simplifying provisions, reducing litigation, and promoting voluntary compliance.
