The budget touches on the government’s goal of setting up large, home-grown accounting firms

The government’s aim to set up large homegrown accounting and consulting firms was mentioned in the Union Budget speech this year when Finance Minister Nirmala Sitharaman announced several tax measures that will improve ease of doing business.

While presenting her ninth consecutive budget, Sitharaman also said that the “Reform Express is well on its way and will maintain its momentum to help us fulfill our kartavya.” The government will set up a Joint Committee of the Ministry of Corporate Affairs and the Central Board of Direct Taxes to incorporate the requirements of Income Computation and Disclosure Standards (ICDS) into the Indian Accounting Standards (IndAS) itself.

She also said that the separate accounting requirement under ICDS will be abolished from the 2027-2028 tax year.

“To support Prime Minister Modi’s vision that homegrown accounting and consulting firms should become global leaders, I propose to rationalize the definition of accountant under the Safe Harbor Rules,” Sitharaman said.

In general, safe harbor rules provide protection against liabilities in transactions subject to various conditions.

The Budget also made several announcements to attract quality foreign investment and promote technology and knowledge partnerships.

Published on February 1, 2026