The Institute of Company Secretaries of India welcomes Income Tax Bill 2025, recognizing it as a significant step in the modernization of taxation framework in India. The Bill aims to simplify tax compliance, enhance transparency, and promote a more efficient tax administration system.
However, the ICSI is calling for inclusion of Company Secretaries in the definition of “Accountant” as outlined in Section 515(3)(b) of the proposed Income Tax Bill 2025. The omission is seen as a missed opportunity in recognizing Company Secretary’s vital role in the financial and compliance landscape of the country. This request comes in the light of significant changes in the tax regime and the government’s vision of transforming India into a USD 5 trillion economy by 2027 and a developed nation by 2047.
Several reports in the past from the Parliamentary Standing Committee have recommended the inclusion of professionals like Company Secretary in the definition of ‘accountant’:
49th Report of the Department Related Parliamentary Standing Committee on Finance (SCF) dated 9th March 2012 on Direct Tax Code 2010: This report suggested including the ‘Company Secretary’ as defined in the Company Secretaries Act, 1980 within the ambit of ‘accountant’.
Direct Tax Code 2013: The DTC 2013 proposed that the definition of “accountant” should include a Company Secretary within the meaning of the Company Secretaries Act, 1980.
122nd Report of the Department Related Parliamentary Standing Committee on Commerce on Ease of Doing Business dated 21st December 2015: This report recommended expanding the definition of ‘accountant’ under the Income Tax Act to include other Finance Professionals, specifically mentioning Company Secretaries.
The government’s initiatives have spurred growth across various sectors leading to an increased demand for skilled professionals across the nation including Tier 2 and Tier 3 cities.
Emphasising on this, CS Dhananjay Shukla, President, The ICSI, said “To cater to this need of a large pool of qualified professionals who can ensure compliance with tax regulations, it is imperative that Company Secretaries be included in the definition of ‘Accountant’ in the Income Tax Bill 2025. Their expertise and competency in both Direct and Indirect Tax laws makes them valuable in the taxation landscape and will ensure availability of a larger pool of qualified professionals for timely compliance.”
The ICSI believes that inclusion of Company Secretaries in the definition of “Accountant” will significantly contribute to the efficiency and effectiveness of tax compliance in India.
The ICSI remains committed to advocating for the recognition of Company Secretaries as integral professionals in the taxation system and looks forward to a positive response from the government in this regard.