MUMBAI: Tax audit should remain the exclusive domain of chartered accountants, as they are the most qualified professionals for the job, ICAI President Charanjot Singh Nanda asserted on Wednesday, pushing back against proposals to allow other professionals into the space.
This comes after bodies representing company secretaries and cost accountants recently petitioned the government to recognise their members as “accountants” under the new Income-Tax bill, which would enable them to conduct tax audits – a lucrative practice currently reserved for chartered accountants.
“I value good relations with other institutes (the Institute of Company Secretaries of India and the Institute of Cost Accountants of India), but tax audits are our forte,” Nanda said in his first press conference since taking charge last week.
He pointed out that while CAs study aspects of cost accountancy and corporate compliance as part of their curriculum, they do not claim expertise in those areas. “We are predominantly trained in audits, and that should be respected,” he emphasized.
Nanda also clarified that tax audits can be conducted by anyone—provided they have passed the CA examination.
Inputs on new I-T Bill soon
A five-member ICAI group is reviewing provisions of the new Income-Tax bill and will submit its report to the finance ministry and the parliamentary select committee before March 10. The bill’s 536 sections have been distributed among 39 regional members for review, with the final suggestions set to be consolidated by the five-member group.
Amid a heated debate on work hours and the meaning of hard work, ICAI will form a committee to promote work-life balance. This committee will collaborate with regional sub-panels to raise awareness on the issue among members.
Relations with NFRA
Addressing the ICAI’s dynamic with the National Financial Reporting Authority (NFRA), Nanda stressed the importance of maintaining a constructive relationship with the audit regulator. The two entities have had differences, particularly over NFRA’s move last year to align Indian audit standards with global norms.
Outlining his priorities for the year, Nanda said the institute will push for government support to expand Indian CA firms on a global scale. ICAI will also strengthen its disciplinary mechanism for quicker resolution of cases, accelerate tech adoption, enhance its international reputation, advance sustainability and non-financial reporting, and improve facilities for students.
Disciplinary actions
In 2024-25, ICAI has taken action against 241 CAs for professional misconduct, including cases related to tax audits that were closed following a Supreme Court judgment. This marks a sharp rise from 119 cases in 2022-23 and 91 in the previous year. Penalties range from monetary fines to temporary or permanent removal from ICAI’s register, depending on the severity of the misconduct.
