More than 50% of the Insolvency Professionals are Chartered Accountants: ICAI President

The President of ICAI, CA. Ranjeet Kumar Agarwal has shared his views on Budget 2024, the Economic Outlook of India, CA Examination Results and more in its President’s message letter.

President Message

As the Union Budget becomes the talk of the nation, its optimistic figures highlight its importance in reaching Viksit Bharat’s ultimate goal. India’s economy has transformed into a shining star thanks to its tenacity and endurance in the face of global uncertainty and difficulties.

This is clear from the fact that real GDP increased by 8.2% in FY 24, topping 8% in three of the four quarters, according to the recently issued Economic Survey report.

India’s Economic Outlook: Present and Future

In 1947, India had a GDP of 2.7 lakh crore, accounting for only 3% of global GDP. Today, it is the world’s fastest-growing economy. The real GDP in FY24 was 20% greater than in FY20, a feat accomplished by only a few big nations, while also indicating a good chance of healthy growth in FY25 and thereafter.

Union Budget 2024-25

The Union Budget has clearly laid out the strategy for accelerating economic growth. During the Amritkaal, the Budget concentrated on employment, skilling, the MSMEs sector, and the Middle Class, laying the groundwork for long-term economic growth fueled by technological advancement.

The proposal outlined by the Hon’ble Finance Minister, such as simplifying the FDI rules, facilitating term loans for MSMEs, and abolishing angel tax will boost domestic and startup industries in the country.

ICAI is also very empowered after having every third CA as a Woman CA and 43% of more than 9 lakh students as girls.

Simplifying taxes, improving taxpayer services, providing tax certainty, and reducing litigation are the four cornerstones of the tax proposals in this budget.

He said, “I am happy to share the consideration of ICAI’s pre-budget suggestions in the Finance Bill. Suggestions included decriminalizing late payment of TDS if made within the prescribed time, raising the threshold limit for allowable remuneration to working partners, increasing the standard deduction for salaried employees, and elevating the threshold exemption for taxation of long-term capital gains on the transfer of STT-paid equity shares.”

He further said, “It is heartening to share that more than 50% of the Insolvency Professionals are Chartered Accountants and are registered with ICAI IPA. Chartered Accountants under the IBC framework play a multifaceted role that is critical for the effective management and resolution of insolvency cases, significantly contributing to the IBC’s objectives of promoting a more efficient and transparent insolvency resolution process in India.”

We will soon finalize the Post-Budget Memoranda on the Finance Bill’s tax provisions for submission to the Government of India. The memos will be primarily based on proposals from our members. Furthermore, we will conduct a comprehensive study of the Income-tax Act of 1961 and make recommendations/suggestions to the government in due course.

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