Archive · 30 Jul 2025
ICAI Tightens Tax Audit Rules for Chartered Accountants
The Institute of Chartered Accountants of India (ICAI) is changing the rules for how many tax audits accountants can do.
Starting in April 2026, accountants can only sign a maximum of 60 tax audit reports each year.
This includes audits for any year, even if it's not the current year.
If an accountant revises a report, it doesn't count towards the limit.
Also, partners in accounting firms can no longer share their audit limits.
This is to make sure audits are done carefully and to help prevent tax avoidance.
ICAI has modified rules for chartered accountants regarding tax audits.
The maximum limit is 60 tax audit assignments per CA, effective April 1, 2026.
This limit includes assignments regardless of the assessment year.
Revised tax audit reports are not counted towards the limit.
Limits on tax audit assignments cannot be shared among partners in a CA firm.
- Who
- Institute of Chartered Accountants of India (ICAI)
- What
- ICAI modified norms on the maximum number of tax audits a chartered accountant can do.
- When
- The changes are effective from April 1, 2026.
- Where
- India
- Why
- To ensure quality of tax audits and prevent tax avoidance and evasion.
Current Regulations
Revised Regulations
Assignment Limits
Current Regulations
Partners could share the limit on audit assignments
Revised Regulations
New rule prevents partners from sharing the limit.
- Organization
- Institute of Chartered Accountants of India (ICAI)
- New Limit
- 60 tax audit assignments per year
- Effective Date
- April 1, 2026
- Scope
- Total tax audits, irrespective of assessment year
- Impact
- Increased focus on quality of audits
Sources
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