Definition of Accountant as per Income-Tax Bill 2025 According to Section 515(3)(b) of the Income-Tax Bill, 2025, an "accountant" is defined as:

"A chartered accountant as defined in Section 2(1)(b) of the Chartered Accountants Act, 1949, who holds a valid certificate of practice under Section 6(1) of that Act."

Key Highlights:

• Chartered Accountant (CA) Requirement:
  • The term "accountant" refers specifically to individuals who are members of the Institute of Chartered Accountants of India (ICAI) and hold a valid Certificate of Practice.
• Exclusion of Other Professionals:
  • The current definition excludes other financial professionals such as Cost and Management Accountants (CMAs) and Company Secretaries (CSs) from being officially recognized as accountants under the Income-Tax Bill, 2025.

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Debate on Expansion of Definition:

• Request for Inclusion of CMAs & CSs:
  • The Institute of Cost Accountants of India (ICAI) has advocated for the inclusion of Cost Accountants in the definition of "accountant" under Section 515(3)(b), citing their expertise in tax compliance, financial management, and cost optimization.
• Ongoing Discussions:
  • Professional bodies are urging the government to broaden the definition of "accountant" to allow qualified CMAs and CSs to perform the functions currently restricted to Chartered Accountants.

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Implications of the Current Definition:

• Who Can Act as an Accountant?
  • As per the current Income-Tax Bill, 2025, only Chartered Accountants (CAs) are authorized to conduct tasks assigned to an "accountant", such as auditing, financial certification, and tax assessments.
• Possible Amendments:
  • Given the ongoing deliberations, there is a possibility that the final version of the Bill may amend this definition to include CMAs and other financial professionals.

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Conclusion: The Income-Tax Bill, 2025, currently defines an "accountant" strictly as a Chartered Accountant (CA) with a valid certificate of practice. However, discussions are ongoing to expand the scope of the definition, which could impact taxation and financial compliance regulations in the future.