Merger of Professional Institutes: ICMAI President favours the merger of CA, CS, and CMA Institutes for National Benefit

Bibhuti Bhusan Nayak, President of the Institute of Cost Accountants of India (ICMAI), has stated that the institute is willing to support the merger of the three premier professional bodies–ICAI (Chartered Accountants), ICSI (Company Secretaries), and ICMAI (Cost Accountants)–if the government decides to pursue such a move.

Speaking exclusively to the media, Nayak emphasised that the government would make the decision on the merger. “If the merger is beneficial to the nation, we have no objections and will fully support it,” he said, emphasising the necessity of establishing a framework that fosters improved governance, transparency, and efficiency in the financial and regulatory institutions.

Nayak acknowledged the challenge of merging these institutes but emphasised the potential long-term benefits.

He mentioned, “We will need to think about the mode of operation, terms and conditions, and management structure. Effective management requires careful consideration of multiple factors.”

These remarks come amid a heated dispute over ICMAI and ICSI professionals’ eligibility to perform tax audits, as proposed in the Income Tax Bill, 2025. Some professionals suggest merging the three institutes into a single body to allow experts from other professions to conduct tax audits. This would authorise all members to perform auditing and taxation tasks.

Addressing worries about the impact on existing professionals, Nayak stated that the primary goal should be the benefit of the nation, with professional recognition coming second.

“If the government’s decision leads to faster benefits for the country, improved governance, and inclusive growth, then the professional community will be satisfied,” he said.

Nayak also noted the challenges experienced by students who devote significant time and resources to their education only to receive little acknowledgement compared to their colleagues in other professional disciplines. He stated that a well-structured merger may overcome these challenges and promote a stronger professional identity and prospects.

Nayak emphasised the need for collaboration among professional bodies, concluding, “If the goal is met and it benefits the government and all citizens, the professional community will embrace the change.”

Advocacy of ICMAI for Inclusion in Income Tax Bill 2025

The proposal to broaden the definition of ‘accountants’ in the Income Tax Bill, 2025, has gained momentum, with professional organisations such as ICMAI and ICSI formally demanding that the government include their members as eligible professionals to perform tax audits.

In a memorandum to the Lok Sabha Select Committee, ICMAI requested that the term ‘Cost Accountant’ be included in Section 515(3)(b) of the Income Tax Bill. The bill, introduced by Finance Minister Nirmala Sitharaman in February 2025, seeks to modernize India’s direct taxation system by simplifying regulations, minimizing litigation, and encouraging voluntary compliance.

Proposal Opposed by ICAI

Despite ICMAI’s backing, the Institute of Chartered Accountants of India (ICAI) has opposed the proposal, claiming that tax audits require specialized training that only Chartered Accountants (CAs) can deliver. ICAI President Charanjot Singh Nanda has stated that CAs are especially prepared to tackle the complexity of tax law and financial reporting.

Justification of ICMAI For Inclusion

ICMAI President Nayak expressed concern about the exclusion of “Cost Accountant” from the term of “Accountant” in the recently presented Income Tax Bill, 2025. He emphasised that this exclusion contradicts past promises to provide an equal playing field for all accounting experts.

Nayak reminded members that the ICMAI Council was actively working with legislators to resolve the situation and would publish a road map for advocacy activities, encouraging members to exhibit their professional competence at this important moment.

The ICMAI has long petitioned for the inclusion of Cost Accountants in the term of “Accountant” under Section 288 of the Income Tax Act, citing their experience in taxation, finance, auditing, and strategic risk management. They suggest that recognising Cost Accountants alongside Chartered Accountants would improve tax compliance and revenue.

President Nayak’s remark underlines the ICMAI’s commitment to ensuring that Cost Accountants are fairly recognised under the new tax legislation, in line with their professional abilities and contributions to India’s financial ecosystem.