Role of Chartered Accountants under the New Income-tax Regime
The New Income-tax Regime has fundamentally changed how taxation works in India. With increased digitisation, faceless proceedings, data analytics, and reduced tolerance for errors, the role of Chartered Accountants (CAs) has expanded far beyond return filing.
Under the new regime, Chartered Accountants act as compliance architects, risk managers, and legal defenders for taxpayers.
Changing Landscape of Tax Administration
The new income-tax framework is characterised by:
Faceless assessments and appeals
Automated data matching through AIS and TIS
Real-time scrutiny triggers
Limited scope for oral explanation
Higher reliance on documentation and written submissions
In this environment, professional guidance is no longer optional.
Advisory Role in Tax Regime Selection
One of the most important functions of a Chartered Accountant is:
Evaluating old vs new tax regime
Analysing long-term tax impact
Advising based on income pattern, deductions, and future planning
Incorrect regime selection can permanently increase tax liability.
CAs ensure informed and legally sound choices.
Ensuring Accurate and Complete Compliance
Chartered Accountants play a key role in:
Correct computation of income
Proper disclosure of exempt income
Reconciliation of AIS, TIS, and Form 26AS
Identification of reporting gaps
Accuracy has become the most valuable compliance asset.
Audit and Certification Responsibilities
Under the new regime, CAs continue to be central to:
Tax audits
Special audits
Transfer pricing certifications
Various statutory reports
Their certification carries legal responsibility and evidentiary value, making professional diligence critical.
Handling Faceless Assessments and Appeals
Faceless proceedings demand:
Precise drafting
Strong documentation
Clear legal reasoning
Chartered Accountants act as:
Authorised representatives
Drafting experts for replies and submissions
Strategists in assessment and appellate proceedings
In faceless systems, quality of written representation determines outcomes.
Risk Management and Litigation Support
CAs help taxpayers:
Anticipate scrutiny risks
Rectify errors before escalation
Challenge invalid notices
File appeals and stay applications
Early professional intervention often prevents long-term litigation.
Advisory on Digital Evidence and Data Trails
With increasing reliance on electronic records, CAs guide clients on:
Maintaining clean digital books
Managing electronic communications
Interpreting data-based allegations
Responding to system-generated mismatches
Digital evidence requires professional interpretation, not assumptions.
Penalty, Prosecution, and Recovery Advisory
Chartered Accountants assist in:
Defending penalty proceedings
Advising on prosecution exposure
Filing compounding and waiver applications
Managing recovery and stay of demand
These areas require both legal understanding and practical experience.
Ethical and Compliance Gatekeeping Role
CAs also serve as:
Ethical gatekeepers of the tax system
Advisors ensuring lawful compliance
Professionals balancing taxpayer interest with statutory obligations
Their role strengthens trust between taxpayers and the tax administration.
Conclusion
Under the New Income-tax Regime, the role of Chartered Accountants has evolved from compliance facilitators to strategic partners in tax governance.
They ensure:
Correct compliance
Risk mitigation
Legal protection
Sustainable tax planning
In a system-driven tax environment, expert guidance is the strongest defence.
Chartered Accountants are no longer optional intermediaries.
They are essential pillars of modern tax compliance.
Written by:
Abhishek Gupta
Chartered Accountant
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