Budget 2025-26: Sitharaman bats for home-grown accounting firms to go global

In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman on Sunday batted for homegrown accounting firms to go global.

Sitharaman proposed to rationalise the definition of accountant for the purpose of safe harbour rules.

“To support PM Modi’s vision of home-grown accounting and advisory firms to become global leaders, I propose to rationalise the definition of accountant for the purposes of Safe Harbour Rules,” said Sitharaman.

Sitharaman also said that the separate accounting requirement based on ICDS will be done away with from the tax year 2027-28.

Safe Harbour Rules refer to pre-defined margins, conditions, or price range that —if followed by the taxpayer— are automatically accepted by taxation authorities without detailed scrutiny, simplifying compliance, reducing litigation, and offering certainty to businesses.

Further simplifying the process with the rationalisation of accountant’s definition appears to be a step aimed towards improving the ease of doing business.

Sitharaman also said the “Reform Express is well on its way and will maintain its momentum to help us fulfil our kartavya” among other proposals aimed at improving the ease of doing business.

Sitharaman said that the government will set up a Joint Committee of Ministry of Corporate Affairs and Central Board of Direct Taxes for incorporating the requirements of Income Computation and Disclosure Standards (ICDS) in the Indian Accounting Standards (IndAS) itself.