ICAI notifies norms to cap individual tax audits by CAs to 60 annually

The Institute of Chartered Accountants of India (ICAI), which has more than four lakh members, has notified the norms for capping the number of individual tax audits and these will come into effect from April 1 next year.

New Delhi: No chartered accountant, whether operating independently or part of an accounting firm, can take up more than 60 tax audits in a financial year, the Institute of Chartered Accountants of India (ICAI) President Charanjot Singh Nanda said on Wednesday.

Talking to reporters, Nanda said the ICAI has issued a notification in this regard.

As per the notification titled ‘The Chartered Accountants (Limit on Number of Tax Audits) Guidelines, 2025’ a CA in practice or a proprietary firm can undertake a maximum of 60 tax audit assignments in a financial year, whether for corporate or non-corporate assesses. If a chartered accountant (CA) is a partner in multiple firms, the total limit of 60 will apply in aggregate across all firms.

When asked whether the new guideline is just an advisory in nature, Nanda said it is mandatory and the ICAI would take action if there is any violation.

“We can, we should, we will,” Nanda said responding to a question on the possibility of taking punitive action against CAs for the violation of the guidelines. The ICAI is a statutory body for the regulation and development of the chartered accountancy profession in the country. Nanda underlined that the institute is empowered to take action against any violation of the guidelines.

The new guideline will be effective from April 1, 2026. This means the limit will apply from FY 2026-27 onwards. CAs will be required to maintain proper records of tax audit assignments in a format prescribed by the ICAI.

Meanwhile, the ICAI on Wednesday announced entry into the domain of Alternate Dispute Resolution (ADR), which plays a significant role at the intersection of commercial, legal, and economic interests of the nation.

The institute has set up ICAI International ADR Centre (IIAC) to promote and institutionalise Alternate Dispute Resolution (ADR) mechanisms in the country.

“The IIAC will serve as a specialized institutional platform offering structured and time-bound arbitration, mediation, conciliation, and negotiation services that are professionally managed, process-driven, and globally benchmarked,” Nanda said.

He claimed that the IIAC will further strengthen the ecosystem for commercial dispute resolution by offering a transparent and technology-enabled mechanism that inspires confidence among domestic and international stakeholders.

The Centre will operate under a robust governance framework and uphold the highest standards of integrity, neutrality, and professional excellence, he added.