ICAI revises tax audit limits for chartered accountants
The Institute of Chartered Accountants of India (ICAI) has announced revised norms for the maximum number of tax audits a chartered accountant can undertake annually.
Effective from 1 April 2026, the guidelines aim to enhance audit quality by maintaining the existing limit of 60 tax audits per member per financial year, applicable to both individual and partnership capacities.
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The revised guidelines specify that the limit of 60 tax audits cannot be distributed or shared among partners in a chartered accountants (CA) company.
However, this limit excludes tax audit assignments under clauses (c), (d) and (e) of section 44AB, concerning sections 44AE, 44ADA and 44AD.
Additionally, revised tax audit reports will not count towards the 60-audit limit.
These changes were decided in ICAI’s 442nd and 443rd meetings held on 26–27 May 2025 and 30 June–1 July 2025, respectively.
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By GlobalDataThe guidelines aim to ensure that the quality of tax audits remains uncompromised.
In a separate development, the ICAI inaugurated the ICAI International ADR Centre (IIAC), a Section 8 company, to promote alternate dispute resolution (ADR) mechanisms in India.
The initiative represents ICAI’s move into ADR, an area intersecting commercial, legal and economic interests.
In a statement, the ICAI said that these centres will enhance the commercial dispute resolution ecosystem by providing a transparent, technology-enabled mechanism.
The centres will operate under a governance framework, ensuring integrity, neutrality, and professional excellence for both domestic and international stakeholders.
ICAI president Charanjot Singh Nanda said: “In this evolving business ecosystem, effective dispute resolution is no longer a procedural formality; it is a strategic necessity and IIAC aims to provide this necessity with credibility, neutrality and efficiency, values that are at the core of ICAI’s professional ethos.
“The IIAC will serve as a specialised institutional platform offering structured and time-bound arbitration, mediation, conciliation and negotiation services that are professionally managed, process-driven and globally benchmarked.”
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