The Institute of Chartered Accountants of India has set a strict limit of 60 tax audits per chartered accountant starting from the financial year 2026–27. The new rule will apply from April 1, 2026.
This limit covers all tax audits done under Section 44AB of the Income-tax Act, 1961.
Under the new rule, a CA can sign only 60 audits in a year, even if they are working as a partner in multiple firms. The limit is total and cannot be increased by working across different firms.
ICAI has also stopped the practice of sharing or transferring unused audit limits between partners. Earlier, some large firms increased their audit numbers by using the names of multiple partners, even if only a few were actually doing the work.
Experts say this change will improve transparency and accountability, making sure the person signing the audit is actually responsible for it.
The move is also expected to create more opportunities for junior chartered accountants, as work will be distributed more fairly.
ICAI will monitor this through the UDIN system, which tracks every audit signed by a CA, ensuring better control over audit limits.