ICAI GUIDELINES ON TAX AUDIT AND AUDIT LIMIT

ICAI Releases Revised Guidance Note on Tax Audit under Section 44AB. The ICAI has released a revised edition of its Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961. This comprehensive guide provides detailed directions for CA on conducting tax audits.

ICAI notified guidelines that limit the number of tax audits that an accounting firm partner can take up in a year to 60. The new guidelines will take effect from April 2026. As per the extant guidelines, while a single chartered accountant operating independently can undertake up to 60 tax audits in a fiscal year, a partnership firm is allowed to conduct audits up to the combined limit of all its partners.