{"id":29546,"date":"2025-07-29T23:47:39","date_gmt":"2025-07-29T18:17:39","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29546"},"modified":"2025-08-20T17:03:31","modified_gmt":"2025-08-20T11:33:31","slug":"icai-restricts-tax-audit-limit-to-60-audits-per-partner","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/icai-restricts-tax-audit-limit-to-60-audits-per-partner\/","title":{"rendered":"ICAI Restricts tax audit limit to 60 Audits per partner"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dc69b9e836a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dc69b9e836a\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/icai-restricts-tax-audit-limit-to-60-audits-per-partner\/#ICAI_officially_restricts_the_tax_audit_limit_to_60_Tax_Audits_per_partner_wef_01042026\" title=\"ICAI officially restricts the tax audit limit to 60 Tax Audits per partner w.e.f 01.04.2026\">ICAI officially restricts the tax audit limit to 60 Tax Audits per partner w.e.f 01.04.2026<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/icai-restricts-tax-audit-limit-to-60-audits-per-partner\/#Why_This_Change_of_60_Income_tax_audit_assignments_us_44AB_in_a_single_FY_Matters\" title=\"Why This Change of  60 Income tax audit assignments u\/s 44AB in a single FY Matters\">Why This Change of  60 Income tax audit assignments u\/s 44AB in a single FY Matters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/icai-restricts-tax-audit-limit-to-60-audits-per-partner\/#New_Tax_Audit_Limits_under_Section_44AB\" title=\"New Tax Audit Limits under Section 44AB\u00a0\">New Tax Audit Limits under Section 44AB\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/icai-restricts-tax-audit-limit-to-60-audits-per-partner\/#Exclusions_from_Tax_Audit_Count\" title=\"Exclusions from Tax Audit Count:\">Exclusions from Tax Audit Count:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/icai-restricts-tax-audit-limit-to-60-audits-per-partner\/#Impact_on_CA_Firms_CA_Practice_Strategy_on_Tax_Audit_Limit\" title=\"Impact on CA Firms &amp; CA Practice Strategy on Tax Audit Limit\u00a0\">Impact on CA Firms &amp; CA Practice Strategy on Tax Audit Limit\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/icai-restricts-tax-audit-limit-to-60-audits-per-partner\/#What_Firms_and_CAs_Should_Do_Now\" title=\"What Firms and CAs Should Do Now\">What Firms and CAs Should Do Now<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/icai-restricts-tax-audit-limit-to-60-audits-per-partner\/#Compliance_Consequences\" title=\"Compliance Consequences\">Compliance Consequences<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 data-start=\"0\" data-end=\"76\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-26771\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/06\/bug-News-for-CA-for-tax-audit.jpeg\" alt=\"big News for CA for tax audit\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/06\/bug-News-for-CA-for-tax-audit.jpeg 1080w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/06\/bug-News-for-CA-for-tax-audit-300x300.jpeg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/06\/bug-News-for-CA-for-tax-audit-1024x1024.jpeg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/06\/bug-News-for-CA-for-tax-audit-150x150.jpeg 150w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/06\/bug-News-for-CA-for-tax-audit-768x768.jpeg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/06\/bug-News-for-CA-for-tax-audit-800x800.jpeg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/h2>\n<h2 data-start=\"0\" data-end=\"76\"><span class=\"ez-toc-section\" id=\"ICAI_officially_restricts_the_tax_audit_limit_to_60_Tax_Audits_per_partner_wef_01042026\"><\/span><span style=\"color: #000080;\">ICAI officially restricts the tax audit limit to 60 Tax Audits per partner w.e.f 01.04.2026<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"0\" data-end=\"76\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">ICAI has formally announced that starting from April 1, 2026 (i.e. FY \u202f2026\u201327), each chartered accountant\u2014whether practicing individually or serving as a partner in a CA firm\u2014will be limited to signing a maximum of 60 Income tax audit assignments u\/s 44AB in a single FY. The objective behind<\/span> the Move to prevent monopolization<span style=\"font-size: 16px;\">\u00a0of audits by a few senior partners, <\/span>Promote equitable workload<span style=\"font-size: 16px;\"> distribution &amp; <\/span>Encourage healthy competition<span style=\"font-size: 16px;\"> and professional integrity, and uplift<\/span>\u00a0audit quality<span style=\"font-size: 16px;\"> by ensuring focus on each assignment.\u00a0<\/span>Key Highlights of the New Rule\u00a0<span style=\"color: #000080;\">Implementation ICAI Guidelines:<\/span><\/p>\n<ul data-start=\"117\" data-end=\"436\">\n<li data-start=\"117\" data-end=\"196\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Tax Audit Cap: Maximum of 60 Income tax audits per partner, regardless of whether they are conducted individually or through the firm, Effective Date: April 1, 2026 (FY\u202f2026\u201327 onwards)\u00a0<\/span><\/li>\n<li data-start=\"277\" data-end=\"356\">\n<p data-start=\"279\" data-end=\"356\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">No proxy signing: A partner cannot sign audit reports on behalf of another partner. Each must personally sign their own audits. Joint capacities across multiple firms are aggregated into the 60\u2011audit cap per individual<\/span><\/p>\n<\/li>\n<li data-start=\"357\" data-end=\"436\">\n<p data-start=\"359\" data-end=\"436\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Firm-level impact: A firm with <em data-start=\"35\" data-end=\"38\">n<\/em> partners can undertake up to 60\u202f\u00d7\u202fn audits in total, provided each partner stays within their personal 60\u2011audit cap<\/span><\/p>\n<\/li>\n<li data-start=\"357\" data-end=\"436\">\n<p data-start=\"359\" data-end=\"436\">No Sharing of Quota Across Partners: Senior partners cannot use junior partners&#8217; quota.\u00a0Each partner must personally sign and own up to their 60 audits.<\/p>\n<\/li>\n<li data-start=\"357\" data-end=\"436\">\n<p data-start=\"359\" data-end=\"436\">Audit Assignment Record Maintenance: Every CA must maintain a register\/log of audit assignments undertaken. Subject to scrutiny by ICAI and peer review mechanisms.<\/p>\n<\/li>\n<li data-start=\"357\" data-end=\"436\">\n<p data-start=\"359\" data-end=\"436\">Compliance &amp; Clarifications: ICAI will issue further clarifications to address implementation concerns.\u00a0Disciplinary action may be taken in case of violations.<\/p>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<h3 data-section-id=\"1ehz16j\" data-start=\"438\" data-end=\"468\"><span class=\"ez-toc-section\" id=\"Why_This_Change_of_60_Income_tax_audit_assignments_us_44AB_in_a_single_FY_Matters\"><\/span><span style=\"color: #000080;\">Why This Change of <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\"> <strong data-start=\"257\" data-end=\"285\">60 Income tax audit assignments<\/strong> u\/s 44AB in a single FY <\/span>Matters<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"470\" data-end=\"721\">\n<li data-start=\"470\" data-end=\"553\">\n<p data-start=\"472\" data-end=\"553\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Improved audit quality: A lower cap ensures that each audit gets sufficient time and professional attention, helping to curb superficial or hurried audit practices<\/span><\/p>\n<\/li>\n<li data-start=\"470\" data-end=\"553\">\n<p data-start=\"472\" data-end=\"553\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Workload equality: Prevents senior or name partners from monopolising tax audit work by using juniors\u2019 auditor status\u2014ensures fairer distribution across partners<\/span><\/p>\n<\/li>\n<li data-start=\"638\" data-end=\"721\">\n<p data-start=\"640\" data-end=\"721\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Increased accountability: Each audit signed by a partner reflects their direct accountability, discouraging draft-and-forget mass sign-offs.<\/span><\/p>\n<\/li>\n<\/ul>\n<h3 data-section-id=\"1irydko\" data-start=\"269\" data-end=\"342\"><span class=\"ez-toc-section\" id=\"New_Tax_Audit_Limits_under_Section_44AB\"><\/span><span style=\"color: #000080;\"><strong data-start=\"276\" data-end=\"342\">New Tax Audit Limits under Section 44AB\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"_tableContainer_80l1q_1\">\n<div class=\"_tableWrapper_80l1q_14 group flex w-fit flex-col-reverse\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" style=\"height: 112px;\" width=\"884\" data-start=\"344\" data-end=\"607\">\n<thead data-start=\"344\" data-end=\"381\">\n<tr data-start=\"344\" data-end=\"381\">\n<th data-start=\"344\" data-end=\"362\" data-col-size=\"sm\"><strong data-start=\"346\" data-end=\"361\">Entity Type<\/strong><\/th>\n<th data-start=\"362\" data-end=\"381\" data-col-size=\"md\"><strong data-start=\"364\" data-end=\"379\">Audit Limit<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"421\" data-end=\"607\">\n<tr data-start=\"421\" data-end=\"495\">\n<td data-start=\"421\" data-end=\"459\" data-col-size=\"sm\">Individual CA \/ Proprietor Firm<\/td>\n<td data-col-size=\"md\" data-start=\"459\" data-end=\"495\">60 Tax Audits per Financial Year<\/td>\n<\/tr>\n<tr data-start=\"496\" data-end=\"607\">\n<td data-start=\"496\" data-end=\"528\" data-col-size=\"sm\">CA Firm (Partnership\/LLP)<\/td>\n<td data-col-size=\"md\" data-start=\"528\" data-end=\"607\">60 Tax Audits per <em data-start=\"548\" data-end=\"557\">partner<\/em> per Financial Year (e.g., 3 partners = 180 max)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<h3 data-section-id=\"hyxv9j\" data-start=\"614\" data-end=\"652\"><span class=\"ez-toc-section\" id=\"Exclusions_from_Tax_Audit_Count\"><\/span><span style=\"color: #000080;\"><strong data-start=\"620\" data-end=\"652\">Exclusions from Tax Audit Count:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"653\" data-end=\"711\">The following do not count towards the 60-audit limit:<\/p>\n<ul data-start=\"713\" data-end=\"876\">\n<li data-start=\"713\" data-end=\"769\">\n<p data-start=\"715\" data-end=\"769\">Audits under Section 44AD, 44ADA, and 44AE<\/p>\n<\/li>\n<li data-start=\"770\" data-end=\"797\">\n<p data-start=\"772\" data-end=\"797\">Revised audit reports<\/p>\n<\/li>\n<li data-start=\"798\" data-end=\"876\">\n<p data-start=\"800\" data-end=\"876\">Part-time partners are <em data-start=\"827\" data-end=\"837\">excluded<\/em> from audit entitlement and computation<\/p>\n<\/li>\n<\/ul>\n<h3 data-section-id=\"aentah\" data-start=\"2339\" data-end=\"2388\"><span class=\"ez-toc-section\" id=\"Impact_on_CA_Firms_CA_Practice_Strategy_on_Tax_Audit_Limit\"><\/span><span style=\"color: #000080;\"><strong data-start=\"2346\" data-end=\"2388\">Impact on CA Firms &amp; CA Practice Strategy on Tax Audit Limit\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"_tableContainer_80l1q_1\">\n<div class=\"_tableWrapper_80l1q_14 group flex w-fit flex-col-reverse\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" style=\"height: 150px;\" width=\"904\" data-start=\"2390\" data-end=\"2831\">\n<thead data-start=\"2390\" data-end=\"2420\">\n<tr data-start=\"2390\" data-end=\"2420\">\n<th data-start=\"2390\" data-end=\"2401\" data-col-size=\"sm\">Area<\/th>\n<th data-start=\"2401\" data-end=\"2420\" data-col-size=\"md\">Implication<\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"2452\" data-end=\"2831\">\n<tr data-start=\"2452\" data-end=\"2558\">\n<td data-start=\"2452\" data-end=\"2484\" data-col-size=\"sm\">Mid- to Large-sized Firms<\/td>\n<td data-start=\"2484\" data-end=\"2558\" data-col-size=\"md\">May need to recruit more full-time partners to maintain audit volumes.<\/td>\n<\/tr>\n<tr data-start=\"2559\" data-end=\"2646\">\n<td data-start=\"2559\" data-end=\"2576\" data-col-size=\"sm\">Compliance<\/td>\n<td data-start=\"2576\" data-end=\"2646\" data-col-size=\"md\">Must restructure workflow to assign audits within per-partner cap.<\/td>\n<\/tr>\n<tr data-start=\"2647\" data-end=\"2736\">\n<td data-start=\"2647\" data-end=\"2667\" data-col-size=\"sm\">Documentation<\/td>\n<td data-start=\"2667\" data-end=\"2736\" data-col-size=\"md\">Strong internal systems to track audit assignments are essential.<\/td>\n<\/tr>\n<tr data-start=\"2737\" data-end=\"2831\">\n<td data-start=\"2737\" data-end=\"2767\" data-col-size=\"sm\">Partnership Structuring<\/td>\n<td data-start=\"2767\" data-end=\"2831\" data-col-size=\"md\">Avoid \u201cname-only\u201d partners; only full-time partners qualify.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<p data-section-id=\"1fjoyv8\" data-start=\"723\" data-end=\"761\">The new cap was announced during a Global Capability Centres Summit hosted by ICAI. ICAI anticipates India will triple its GCCs to 5,000+ by 2027, employing over 80k CAs. ICAI is also working on creating a framework for overseas networking to help Indian firms evolve into domestic &#8220;Big Four&#8221; equivalents through global tie-ups. Draft guidelines for such tie-ups are under public consultation, with the comment deadline extended to July 16, 2025.<\/p>\n<h3 data-section-id=\"1fjoyv8\" data-start=\"723\" data-end=\"761\"><span class=\"ez-toc-section\" id=\"What_Firms_and_CAs_Should_Do_Now\"><\/span><span style=\"color: #000080;\">What Firms and CAs Should Do Now<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"_tableContainer_80l1q_1\">\n<div class=\"_tableWrapper_80l1q_14 group flex w-fit flex-col-reverse\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" data-start=\"763\" data-end=\"1195\">\n<thead data-start=\"763\" data-end=\"795\">\n<tr data-start=\"763\" data-end=\"795\">\n<th data-start=\"763\" data-end=\"777\" data-col-size=\"sm\">Action Area<\/th>\n<th data-start=\"777\" data-end=\"795\" data-col-size=\"sm\">Recommendation<\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"830\" data-end=\"1195\">\n<tr data-start=\"830\" data-end=\"915\">\n<td data-start=\"830\" data-end=\"872\" data-col-size=\"sm\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Client Assignment Planning<\/span><\/td>\n<td data-start=\"872\" data-end=\"915\" data-col-size=\"sm\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Review and redistribute audit assignments so no partner exceeds 60 income tax\u00a0audits.<\/span><\/td>\n<\/tr>\n<tr data-start=\"916\" data-end=\"983\">\n<td data-start=\"916\" data-end=\"940\" data-col-size=\"sm\">Internal Tracking<\/td>\n<td data-col-size=\"sm\" data-start=\"940\" data-end=\"983\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Implement reliable monitoring systems or software to track each partner\u2019s audit count.<\/span><\/td>\n<\/tr>\n<tr data-start=\"984\" data-end=\"1048\">\n<td data-start=\"984\" data-end=\"1005\" data-col-size=\"sm\">Firm Structure<\/td>\n<td data-start=\"1005\" data-end=\"1048\" data-col-size=\"sm\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Consider adding or activating genuine partners if audit load exceeds capacity.<\/span><\/td>\n<\/tr>\n<tr data-start=\"1049\" data-end=\"1109\">\n<td data-start=\"1049\" data-end=\"1066\" data-col-size=\"sm\">Compliance<\/td>\n<td data-start=\"1066\" data-end=\"1109\" data-col-size=\"sm\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Avoid proxy signing and be ready to report counts per partner annually.<\/span><\/td>\n<\/tr>\n<tr data-start=\"1110\" data-end=\"1195\">\n<td data-start=\"1110\" data-end=\"1152\" data-col-size=\"sm\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Peer Review Readiness<\/span><\/td>\n<td data-start=\"1152\" data-end=\"1195\" data-col-size=\"sm\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Maintain robust documentation as the limit is now enforceable by disciplinary measures.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div class=\"sticky end-(--thread-content-margin) h-0 self-end select-none\">\n<div class=\"absolute end-0 flex items-end\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29548\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/Big-Breaking.jpg\" alt=\"Big Breaking On tax audit \" width=\"955\" height=\"1670\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/Big-Breaking.jpg 732w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/Big-Breaking-172x300.jpg 172w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/07\/Big-Breaking-586x1024.jpg 586w\" sizes=\"(max-width: 955px) 100vw, 955px\" \/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<h3 data-section-id=\"wz74mc\" data-start=\"1197\" data-end=\"1227\"><span class=\"ez-toc-section\" id=\"Compliance_Consequences\"><\/span><span style=\"color: #000080;\">Compliance Consequences<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p data-start=\"1229\" data-end=\"1309\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Exceeding the cap can attract disciplinary action under the ICAI\u2019s Second Schedule of CA Act, 1949. CA Firms must maintain records of each partner\u2019s audit assignments &amp; ensure transparency in assignments &amp; sign-offs<\/span><\/p>\n<p data-start=\"1316\" data-end=\"1650\">In summary: Yes, your update is accurate. From 1 April 2026, ICAI will enforce a 60 income tax\u2011audit limit per partner in a CA firm. This applies strictly per individual not per firm &amp; prohibits proxy signing. Clients, firms, and partners must therefore plan and allocate audits carefully to stay compliant and maintain audit quality.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ICAI officially restricts the tax audit limit to 60 Tax Audits per partner w.e.f 01.04.2026 ICAI has formally announced that starting from April 1, 2026 (i.e. FY \u202f2026\u201327), each chartered accountant\u2014whether practicing individually or serving as a partner in a CA firm\u2014will be limited to signing a maximum of 60 Income tax audit assignments u\/s &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[117],"tags":[10270],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29546"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=29546"}],"version-history":[{"count":3,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29546\/revisions"}],"predecessor-version":[{"id":29550,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29546\/revisions\/29550"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}