Final Verdict: CMAs Can Do Tax Audit — Here’s the Legal and Professional Basis!

Introduction:
There’s been long-standing confusion around whether Cost & Management Accountants (CMAs) are eligible to conduct tax audits under Section 44AB of the Income Tax Act.

Let’s set the record straight:
CMAs can do tax audits — under specific conditions and in accordance with evolving interpretations of the law and regulatory frameworks.

This article explains how, when, and on what legal basis CMAs can legally conduct tax audits, and why this is no longer a grey area.

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1. What the Income Tax Act Says

Section 44AB:

• Requires a tax audit of accounts by an “accountant” if business/professional turnover exceeds prescribed limits.

Who is an “Accountant”?

As per Section 288(2) and related rules:

• The term “accountant” is generally interpreted to mean a member of ICAI (Chartered Accountant)
• However, this definition is not set in stone — it is open to broader interpretation depending on the role, nature of audit, and allied regulations

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2. Legal & Institutional Developments Supporting CMA Involvement

• ICMAI (Institute of Cost Accountants of India) has been recognized under several statutes for conducting audits in specified domains
• CMAs are already conducting audits under Companies Act, GST, Cost Records, Internal Controls, and PSU assignments
• Recent representations to CBDT, MCA, and judiciary have challenged the exclusivity of CAs under the tax audit regime
• In practice, many tax audits are supported, prepared, and signed by CMA-led teams under collaboration

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3. Real-World Scenario: Where CMAs Are Doing Tax Audit Work

• Private audits of tax filings for SMEs & MSMEs
• Tax structuring and audit review under CA certification
• Collaborative tax audit practice in mid-sized firms
• Cost audit + tax audit bundled compliance for manufacturing units

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4. Final Verdict: YES, CMAs Can Do Tax Audit — But with Caveats

While the current statutory signature authority for Section 44AB lies with CAs, CMAs are:

• Legally capable of performing complete tax audit work
• Practically involved in tax audit execution across firms
• Professionally qualified and empowered by growing recognition
• Actively pushing for amendments to expand formal audit eligibility

Thus, the functional reality is clear:

CMAs can do tax audit — and are doing it. What remains is formal statutory signature inclusion, which is evolving.

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Conclusion:
Tax audit isn’t just about signature authority — it’s about competence, compliance, and capability.
And CMAs have proven time and again that they possess all three. The profession is ready — and already doing the job.