ICAI amends tax audit restrictions for Certified Public Accountants
The Institute of Certified Public Accountants of India (ICAI) has announced the revised criteria for the maximum number of tax audits that Certified Public Accountants can perform annually.
The guidelines, effective from April 1, 2026, aim to improve the quality of audits by maintaining the existing limits of 60 tax audits per member per fiscal year, which apply to both individual and partnership capabilities.
The revised guidelines specify that the limits of 60 tax audits cannot be distributed or shared between partners in Certified Public Accountant (CA) companies.
However, this limit excludes tax audit assignments under clauses (c), (d), and (e) of sections 44AB with regard to sections 44AE, 44ADA, and 44AD.
Additionally, revised tax audit reports do not count towards the 60 audit limit.
These changes were decided at ICAI’s 442nd and 443rd meetings held from May 26-27, 2025 to June 30-July 30, 2025.
The guidelines aim to ensure the quality of tax audits is guaranteed without compromising.
In another development, ICAI has opened the ICAI International ADR Centre (IIAC), a section 8 company, to promote the alternative conflict resolution (ADR) mechanism in India.
This initiative represents ICAI’s transition to ADR. ADRs are areas that intersect commercial, legal and economic interests.
In a statement, ICAI said these centres will strengthen the commercial conflict resolution ecosystem by providing transparent and technically responding mechanisms.
The Centre operates under a governance framework to ensure integrity, neutrality and professional excellence of both national and international stakeholders.
ICAI President Charanjot Singh Nanda said: “In this evolving business ecosystem, effective conflict resolution is no longer a procedural form. It is a strategic need, and IIAC aims to provide this need with core value in ICAI’s professional spirit.
“IIAC serves as a professionally managed, process-driven and globally benchmarked, structured, time-bound arbitration, mediation, mediation and negotiation services.”
“ICAI Revises Certified Public Accountants’ Tax Audit Limitations” was originally created and published Accountanta brand owned by GlobalData.
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