Tax Audits Our Forte, Unfair to Treat Others as Accountants: ICAI President Nanda
Newly elected Institute of Chartered Accountants of India (ICAI) President Charanjot Singh Nanda strongly opposed the inclusion of company secretaries and cost accountants as accountants under the new Income-Tax bill, arguing that tax audits should be the sole preserve of chartered accountants (CAs).
His comments follow after the Institute of Company Secretaries of India (ICSI) and the Institute of Cost Accountants of India (ICAI-CMA) approached the government for permission to enable their members to perform tax audits, a function presently limited to CAs.
Telling his first press conference after taking office, Nanda stated, "I would like to have good relations with other institutes. But tax audit is chartered accountants' forte". He pointed out that although there are aspects of cost accountancy and compliance with company law in the CA curriculum, CAs do not have expertise in such fields. 'We are trained mainly in audits', he remarked, reaffirming the perception that professional sectors must be respected.
He also pointed out that anyone aspiring to conduct tax audits should clear the CA examination, maintaining the profession’s high standards.
ICAI’s Inputs on New I-T Bill
The ICAI has constituted a five-member panel to study the provisions of the new Income-Tax bill and make recommendations to the finance ministry and the parliamentary select committee by March 10. Nanda disclosed that the bill's 536 sections have been divided among 39 regional members for scrutiny, to ensure thorough feedback from the institute.
Committee on Work-Life Balance
In the midst of discussions on work hours and hard work, the ICAI will establish a committee to inculcate work-life balance among its members. The committee through regional sub-panels will sensitize people about attaining a sustainable professional life, Nanda added.
Relations with NFRA
Nanda also addressed ICAI’s relationship with the National Financial Reporting Authority (NFRA), stating that he aims to maintain healthy ties with the audit regulator. The ICAI and NFRA had differences last year over the latter’s push to align domestic audit standards with global practices. “We hope that our views will be taken into consideration”, he said.
ICAI’s Focus Areas
Outlining ICAI’s priorities for the coming year, Nanda said the institute will work towards expanding Indian CA firms globally with government support. Strengthening the disciplinary framework to ensure swift justice, enhancing technology adoption, boosting ICAI’s global reputation, advancing sustainability and non-financial reporting, and improving student facilities are also on the agenda.
Disciplinary Actions Against CAs
ICAI has acted firmly against professional misconduct, disciplining 241 CAs in 2024-25. These include tax audit cases closed on the basis of a Supreme Court judgment. The figures show an increasing trend in disciplinary action with 119 CAs being disciplined in 2022-23 and 91 in 2021-22. The disciplinary action varies from fines to suspension and permanent delisting of names from the members' register.
Nanda’s firm stance on tax audits and ICAI’s renewed focus on regulatory, disciplinary, and global expansion initiatives mark a pivotal phase for the profession.
