ICMAI President Bibhuti Bhusan Nayak suppots merger of CA, CS, and CMA Institutes for national benefit, ETCFO
Bibhuti Bhusan Nayak, the President of the Institute of Cost Accountants of India (ICMAI), has expressed the institute’s readiness to support the merger of the three premier professional bodies—ICAI (Chartered Accountants), ICSI (Company Secretaries), and ICMAI (Cost Accountants)—if the government decides to pursue such a move.
Speaking exclusively with ETCFO, Nayak emphasized that the decision regarding the merger rests with the government. “If the merger is beneficial to the nation, we have no objection and will fully support it,” he stated, highlighting the importance of creating a structure that promotes better governance, transparency, and efficiency within the financial and regulatory systems.
Nayak acknowledged the complexity of merging these institutes but stressed the potential far-reaching benefits. “We will need to brainstorm on the modus operandi, terms and conditions, and management structure. There are many aspects to consider to ensure it is managed effectively,” he added.
These remarks come amid an intensified debate surrounding the eligibility of professionals from ICMAI and ICSI to conduct tax audits, following a proposal in the Income Tax Bill, 2025. Many professionals argue that if experts from multiple fields are allowed to conduct tax audits, it might be more effective to merge the three institutes into a single body that could authorize all its members to carry out auditing and taxation functions.
Addressing concerns about the impact on existing professionals, Nayak reassured that the primary focus should be the nation’s benefit, with professional recognition as a secondary consideration. “If the government’s decision leads to faster benefits for the country, improved governance, and inclusive growth, then the professional community will be satisfied,” he affirmed.
Nayak also acknowledged the challenges faced by students who invest significant time and resources into their studies, only to find limited recognition compared to their peers in other professional fields. He suggested that a well-structured merger could address these issues, fostering greater professional identity and opportunities.
Stressing the importance of collaboration among professional bodies, Nayak concluded, “If the objective is fulfilled and it benefits the government and all citizens, then the professional community will embrace the change.”
ICMAI’s Advocacy for Inclusion in Income Tax Bill, 2025
The proposal to expand the definition of ‘accountants’ in the Income Tax Bill, 2025, has gained significant momentum, with professional bodies such as ICMAI and ICSI formally requesting 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. Introduced by Finance Minister Nirmala Sitharaman in February 2025, the bill aims to overhaul India’s direct taxation system by simplifying provisions, reducing litigation, and promoting voluntary compliance.
ICAI Opposes the Proposal
Despite ICMAI’s support, the proposal has faced opposition from the Institute of Chartered Accountants of India (ICAI), which argues that tax audits require specialized training that only Chartered Accountants (CAs) can provide. ICAI President Charanjot Singh Nanda has maintained that CAs are uniquely qualified to handle the complexities of tax law and financial reporting.
ICMAI’s Justification for Inclusion
ICMAI President Nayak addressed concerns regarding the exclusion of “Cost Accountant” from the definition of “Accountant” in the newly introduced Income Tax Bill, 2025. He emphasized that this omission contradicted previous assurances of providing a level playing field for all accounting professionals.
Nayak assured members that the ICMAI Council was actively engaging with policymakers to rectify the situation and would share a roadmap for advocacy efforts, encouraging members to demonstrate their professional competence during this critical time.
The ICMAI has long advocated for the inclusion of Cost Accountants in the definition of “Accountant” under Section 288 of the Income Tax Act, highlighting their expertise in taxation, finance, auditing, and strategic risk management. They argue that recognizing Cost Accountants alongside Chartered Accountants would enhance tax compliance and safeguard revenue.
President Nayak’s message reflects the ICMAI’s commitment to ensuring that Cost Accountants receive equitable recognition under the new tax legislation, aligning with their professional capabilities and contributions to India’s financial ecosystem.
CMA President Urges Equal Recognition with Chartered Accountants
Disparities in Income Tax Bill 2025
The President of the Institute of Cost Accountants of India expressed deep concerns over the recent Income Tax Bill 2025, particularly regarding the ambiguous definition of “accountant” and its implications for the profession.
“The objective of the Income Tax Bill was to simplify the tax code and reduce litigation, but the current draft seems to favor only one profession—chartered accountants—while sidelining other accounting professionals like CMA,” the President stated.
A Profession Overlooked?
The President highlighted several clauses in the bill where the term “accountant” is used without clearly defining the scope.
“For example, in Clause 44 regarding the amortization of preliminary expenses, the bill mandates certification by ‘an accountant,’ which implicitly refers to Chartered Accountants, despite the presence of CMA professionals equally qualified to handle such tasks,” the President explained.
He further emphasized that clauses related to tax audits, international transactions, and valuation also exclusively mention Chartered Accountants, raising concerns about professional bias.
The Growing Role of CMAs in India’s Financial Landscape
The CMA President underscored the significant role of CMAs in the corporate sector, managing key financial functions across top companies.
“Before the pandemic, the number of assessees was around two crores. Now, it’s close to eight crores, and in the next five years, we expect it to exceed twelve crores. This growing number of assessees demands a corresponding increase in accounting professionals,” he added.
Citing examples from prominent companies like NTPC and PGCIL, he stated, “In these organizations, CMAs are at the helm of finance management, showcasing their capability and expertise.”
A Call for Inclusivity and Recognition
The CMA President strongly advocated for equal recognition across all accounting professions.
“Our intention isn’t to oppose Chartered Accountants. We want to contribute to India’s economic growth, especially in the context of ‘Atmanirbhar Bharat’ and the vision for 2047,” he asserted.
He also responded to discussions about the potential merger of all three accounting institutes—CMA, CA, and CS.
“If the government decides on a merger to benefit the nation, we have no objection. Our focus is on synergy and better governance, not professional rivalry,” he stated, emphasizing the importance of collaboration for India’s financial future.
The Road Ahead—A Unified Vision for India’s Taxation System
The ICMAI President concluded with a hopeful note, urging policymakers to consider the professional expertise CMAs bring to the table.
“Taxation is not just about direct taxes; it’s about understanding the broader financial landscape. Every financial transaction, whether in corporate boards or personal finances, involves taxation knowledge. We are ready to contribute our expertise to build a robust tax system for India,” he affirmed.
Professional Institutes in India
ICAI (Chartered Accountants) is India’s largest accounting body under the Ministry of Corporate Affairs, established in 1949. ICSI (Company Secretaries) promotes corporate governance and regulatory frameworks. ICMAI (Cost Accountants), formerly ICWAI, focuses on global cost and management accounting, contributing significantly to financial strategies worldwide.
