ICAI to Limit Tax Audits to 60 per Partner from FY27

The Institute of Chartered Accountants of India (ICAI) is planning to implement a new ceiling on the number of tax audits a partner in a CA firm can undertake. Effective from the financial year 2027, the proposed limit will be set at 60 tax audits per partner. This move is aimed at improving the quality of audits by ensuring that partners can devote sufficient time and attention to each assignment. It is also intended to curb the practice of a few firms monopolizing a large volume of tax audits. The ICAI believes that this measure will promote a more equitable distribution of professional work among its members and will enhance the credibility and rigor of the tax audit process, which is crucial for maintaining the integrity of the country's tax administration system. The institute will be issuing detailed guidelines on the implementation of this new limit.