India Increases Tax Audit Limit for Chartered Accountants

February 12, 2014 Posted by India Briefing Reading Time: 2 minutes

MUMBAI – The Institute of Chartered Accountants of India (ICAI) has increased the number of tax audit assignments for practicing chartered accountants from 45 to 60. Citing the ability for chartered accountants to provide professional, competent services in an IT-enabled environment as the reason for the increase, the official ICAI press release can be found here with the original text as follows:

In view of the enhancement of professional competence of members to perform quality services in an IT-enabled environment, the Council of the Institute at its 331st meeting held from 10th to 12th February, 2014 has decided to increase the “specified number of tax audit assignments” for practicing Chartered Accountants, as an individual or as a partner in a firm , from 45 to 60. The said limit will be effective for the audits conducted during the financial year 2014-15 and onwards. Accordingly, the Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008 stands amended from 1.4.2014 as under:

In the Council General Guidelines, 2008, the Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008, in Chapter VI “Tax Audit assignments under Section 44AB of the Income-tax Act, 1961 “, in Explanation given in Para 6.1, in sub-para(a) and sub-para(b), the figure “45” be substituted with the figure “60”.

A complete version of the referenced Council General Guidelines, 2008 (Council Guidelines No.1-CA(7)/02/2008) can be found here.

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