India backs global ambitions of domestic accounting companies

The Government of India, successful its Union Budget 2025–26, has announced a argumentation thrust to presumption home accounting and advisory companies connected the planetary stage.

Presenting the Budget, Finance Minister Nirmala Sitharaman said the authorities volition revise who qualifies arsenic an accountant nether harmless harbour provisions successful the income taxation regime, Firstpost reported.

“To enactment PM Modi’s imaginativeness of home-grown accounting and advisory firms to go planetary leaders, I suggest to rationalise the explanation of accountant for the purposes of Safe Harbour Rules,” Sitharaman said.

Under harmless harbour rules, taxpayers tin opt for specified margins, parameters oregon terms ranges that, if adhered to, are accepted by the taxation authorities without granular verification.

This mechanics is intended to little the hazard of disputes, trim documentation and bring predictability to taxation outcomes.

The projected accommodation to the explanation of accountant wrong this model is positioned arsenic a compliance simplification measurement and is tied to the broader docket of making it easier to run businesses successful India.

Sitharaman further announced that the chiseled accounting request based connected Income Computation and Disclosure Standards (ICDS) volition beryllium discontinued from the appraisal twelvemonth corresponding to the taxation twelvemonth 2027–28.

At present, ICDS operates arsenic a abstracted furniture for taxation computation, often necessitating reconciliations with fiscal statements prepared nether Indian Accounting Standards (IndAS).

To span this gap, the authorities plans to represent a associated sheet with representatives from the Ministry of Corporate Affairs and the Central Board of Direct Taxes.

This associated committee volition beryllium tasked with incorporating ICDS-related provisions into IndAS itself, efficaciously integrating taxation computation rules into the existing fiscal reporting standards.

"India backs planetary ambitions of home accounting companies" was primitively created and published by International Accounting Bulletin, a GlobalData owned brand.

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