UDIN Directorate Update: Field-Level Validation & 60 Tax Audit Ceiling (Effective 1 April 2026)

The Unique Document Identification Number Directorate of the Institute of Chartered Accountants of India has announced important changes relating to UDIN generation under the “GST and Tax Audit” category. At its 442nd Council Meeting (May 2025), the the Institute of Chartered Accountants of India approved.

The Unique Document Identification Number Directorate of the Institute of Chartered Accountants of India has implemented field-level validation across all sub-categories u/s44AB [Clauses (a) to (e)] at the time of Unique Document Identification Number generation under the ‘GST and Tax Audit’ category.

Field-Level Validation Introduced in Unique Document Identification Number Portal

A unique document identification number cannot be generated unless statutory conditions are satisfied. Members must carefully verify turnover, cash percentages, presumptive taxation conditions, and income thresholds before accepting audit assignments. A ceiling of 60 tax audit cap  audits per member will be system-enforced from 1 April 2026, with corresponding restrictions on UDIN generation for Income tax Form 3CA and Form 3CB. And accurate data entry at the time of Unique Document Identification Number generation is critical.

In line with the Council’s decision, the Unique Document Identification Number portal will enforce the 60-audit ceiling from April 1, 2026. And immediate implementation of field-level validations across all sub-categories u/s44AB (clauses a to e).

In line with the Council’s decision, the Unique Document Identification Number portal will enforce the 60-audit ceiling from April 1, 2026. And immediate implementation of field-level validations across all sub-categories u/s44AB (clauses a to e). Validation checks now include Turnover limits, Gross receipts thresholds, Cash transaction percentages, Presumptive taxation eligibility and Applicability of Section 44AD, 44ADA, 44AE, 44BB, and 44BBB

UDIN generation will proceed only if the specified validation logic is satisfied. Members are advised to ensure accurate data entry, review statutory thresholds carefully, and monitor audit count before accepting assignments for FY 2025-26 onward.

Further, at its 442nd Council Meeting of the Institute of Chartered Accountants of India (26th–27th May 2025), the Council approved a ceiling of 60 Tax Audits per member, effective 1 April 2026. Accordingly, the Unique Document Identification Number Portal will enforce the ceiling from the same date.

Ceiling Applicable to the Following Forms: The 60-audit ceiling will apply to Unique Document. Identification number generation for:

1. Income tax Form 3CA – 3rd proviso to Section 44AB
2. Income tax Form 3CB – Section 44AB(a)
3. Income tax Form 3CB – Section 44AB(b)
4. Income tax Form 3CB (Combined) – u/s44AB

Field-Level Validation – Section-wise Logic : Field-level validation has already been implemented on the Unique Document Identification Number Portal and will continue beyond 1 April 2026. Below is a structured summary of the validation logic:

Section 44AB(a) : Preliminary Question: Are cash transactions ≤ 5%? (Yes/No)

Validation Criteria:

• If Yes → Turnover must exceed INR 10 Crore
• If No → Turnover must exceed INR 1 Crore

Section 44AB(b) : Validation Criteria: Gross Receipts must exceed INR 50 Lakhs

Section 44AB(c) : Preliminary Question: Is income claimed lower than deemed profits under Sections 44AE / 44BB / 44BBB? (Yes/No)

Validation Logic: UDIN generation proceeds only if the answer is "yes."

Section 44AB(d) : Preliminary Questions:

• Q(i): Is Total Gross Receipts ≤ INR 50 Lakhs? (Yes/No)
• Q(ii): Are total gross receipts > INR 50 Lakhs but ≤ INR 75 Lakhs AND total cash receipts ≤ 5% of total gross receipts? (Yes/No)
• Q(iii): Is income claimed lower than deemed profits u/s 44ADA? (Yes/No)
• Q(iv): Is Total Income > Basic Exemption Limit? (Yes/No)

Validation Logic: Proceed only if Either Q(i) OR Q(ii) = Yes  AND Both Q(iii) AND Q(iv) = Yes

Section 44AB(e) : Preliminary Questions:

• Q(i): Is Section 44AD(4) applicable? (Yes/No)
• Q(ii): Is Total Income > Basic Exemption Limit? (Yes/No)

Validation Logic: Proceed only if Both Q(i) AND Q(ii) = Yes