Anisha Kumari | Jun 28, 2025 |
ICAI to Change Tax Audit Limit Rules for CAs from April 2026: ICAI President
A big change will take place in the tax audit rules of the Institute of Chartered Accountants of India (ICAI). Starting from April 1, 2026, CA will be able to do only up to 60 tax audits in on financial year. This limit exists already but now it will be applied strictly to each and every individual CA and not at the firm level.
CA firms with more than one partner earlier, it was possible for partners to join their limits. This gave access to one partner to sign more than 60 tax audits by using the unused audit limit of other partners in the same firm. But in the new rule this practice will no longer be allowed. Every CA will now have to follow the 60-audit limit and the unused limits of other partners cannot be used.
One partner will not be allowed to do tax audits on behalf of the other partner from the FY 2026-27. This change is expected to distribute the workload equally among all the CAs and stop the concentration of too many audits being handled by a few senior members in the big firms.
This new rule has been introduced so that the quality of audits can improve and less mistakes or wrongdoings to be made. It will also make the system fair by giving more chances to younger or smaller CAs, who doesn’t have many opportunities before because most audits were given to by a few people.
Many CAs see this rule as a step in the right direction. It is expected to raise professional standards while promoting ethical practices and make the reputation of the accounting profession in India better.
This rule will be applicable after two years so that everyone will be able to prepare themselves. This time has been given so that CA firms and individual CAs can make the important changes in how they work and plan their business. The ICAI wants to make sure this transition to be easy and the new rule being followed properly.
Also, this rule is a part of bigger set of reform which are being planned to make the accounting profession stronger in India. The main goal behind this is to make audits more reliable, improve financial reporting. These reforms will help the accounting field grow in a better and more professional way.
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