The new income tax law, under Section 515(3)(b) of income tax bill, 2025, has retained the existing definition of accountants, ensuring that Chartered Accountants (CAs) continue to serve as auditors without any changes. This decision maintains consistency in financial reporting and auditing practices, providing clarity for businesses and professionals alike.
Also, Chartered Accountants (CAs) will continue to serve as authorized representatives before the Income Tax Authority and the Income Tax Appellate Tribunal (ITAT) in accordance with section 515 of Income Tax Act, 2025. This provision ensures that taxpayers can rely on qualified professionals to represent them in matters related to income tax assessments, disputes, and appeals which further provides consistency in the provisions related to authorised representatives in tax litigations.
Section 63 of Income Tax Act, 2025
Section 63 of Income Tax Act, 2025 provides for the provisions related to Tax Audit under the new tax laws. Sub-section 1 of Section 63 of the new tax law states that:
Every person, carrying on the business or profession fulfilling the conditions specified in column B of the Table below, shall get his accounts of the tax year audited by an accountant
Meaning thereby, the new tax law states that the accounts are to be audited by an accountant which is similar to earlier section 44AB of the old Income Tax Act, 1961.
Section 2(1) of Income Tax Act, 2025
Section 2(1) of Income Tax Act, 2025 defines accountant as follows:
accountant shall have the meaning assigned to it in section 515(3)(b)
Section 515(3)(b) of Income Tax Act, 2025
Section 515(3)(b) of new Income Tax states as Follows:
accountant means 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
Section 2(1)(b) of the Chartered Accountants Act, 1949
Section 2(1)(b) of Chartered Accountants provides the meaning of Chartered Accountant as follows:
Chartered Accountant means a person who is a member of the Institute of Chartered Accountant of India (ICAI)
Conclusion
Under Section 515(3)(b) of the Income Tax Act 2025, the definition of an accountant remains unchanged. Chartered Accountants continue to serve as authorized representatives before Income Tax Authority & Income Tax Appellate Tribunal (ITAT) and further as tax auditors, ensuring compliance with financial regulations. Their role in auditing, tax compliance, and representing taxpayers before authorities remains intact, reflecting the government’s trust in their expertise and the stability of financial reporting practices.