Congress’s Perspective: Inclusion of Company Secretaries
Conversely, Congress Member of Parliament Deependra Singh Hooda supports broadening the definition of ‘accountant’ to encompass Company Secretaries (CS). Hooda contends that CS professionals bring valuable expertise in corporate governance and regulatory compliance, which are integral to comprehensive tax audits. He has formally communicated this viewpoint to the Chairman of the Select Committee reviewing the bill, advocating for the inclusion of CS professionals in tax audit roles.
Finance Minister’s Assurance
In response to these differing viewpoints, Finance Minister Nirmala Sitharaman has assured stakeholders that the Select Committee will thoroughly examine the matter. This review aims to ensure that the final legislation reflects a balanced and well-considered approach to tax audit responsibilities.
Implications for Professional Bodies
The debate has significant implications for professional bodies such as the ICMAI and ICSI, which have formally requested the inclusion of their members as eligible professionals for conducting tax audits. The outcome of this legislative process will determine the scope of practice for these professionals and could reshape the landscape of tax audit practices in India.
Next Steps
The Select Committee’s forthcoming deliberations will be pivotal in resolving this issue. Their recommendations will influence the final provisions of the Income Tax Bill, 2025, particularly concerning which professionals are authorized to conduct tax audits. The decision will have lasting impacts on the accounting and compliance sectors, affecting how tax audits are conducted and by whom.
As the legislative process unfolds, stakeholders from various professional backgrounds await the Select Committee’s findings, which will play a crucial role in shaping the future framework of tax audit practices in India.
