The highlight of the two meetings of the select committee of the Lok Sabha, tasked with examining the Income Tax Bill, 2025, has been suggestions that the panel could recommend expanding the definition of 'accountant' to include other professionals, especially company secretaries and cost accountants.
The Institute of Chartered Accountants of India (ICAI), which briefed the panel at its first meeting on March 6, has opposed any changes to the definition. It is learned that members of the 31-member panel are inclined to align with the government's stance on the issue.
The Bill, introduced in the Lok Sabha on February 13 and later referred to a select committee, retains the existing definition of 'accountant.' It states that an '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 the Act.At the panel's two meetings, some members also sought clarity on the scope of search and seizure powers under the proposed law, particularly regarding virtual digital space.
Officials have maintained that the Bill does not introduce any changes to the search and seizure provisions in the existing Income Tax Act.
The Bill primarily aims to simplify language and remove redundant provisions. Key changes include granting power to frame schemes for greater efficiency, transparency, and accountability, expanding the definition of undisclosed income to include virtual digital assets, and allowing authorities to gain access to virtual digital space during search and seizure by overriding any required access codes.
The 31-member select committee, headed by the BJP's Baijayant Panda, has held two meetings.
Archis Mohan/Business Standard
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