Budget touches upon govt's aim to create big home-grown accounting firms

The government's aim to create big home-grown accounting and advisory firms found a mention in this year's Union Budget speech as Finance Minister Nirmala Sitharaman announced various tax measures that will foster the ease of doing business. While presenting her ninth consecutive Budget, Sitharaman also said the ''Reform Express is well on its way and will maintain its momentum to help us fulfil our kartavya.'' 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. She also said that the separate accounting requirement based on ICDS will be done away with from the tax year 2027-28. ''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,'' Sitharaman said. Generally, safe harbour rules provide protection from liabilities in transactions subject to various conditions. In the Budget, various announcements have also been made to attract high-quality foreign investment and foster technology and knowledge partnerships.