Number of Tax Audits

Number of tax audits limitation is increased from 45 to 60 for CA’s

January 22, 2015

The Maximum number of Tax Audits Assignments under Section 44AB which can be taken by a CA has been increased from 45 to 60 by the ICAI Council in its 331st meeting held from 10th to 12th Feb 2014. (Refer: Official Announcement)

Thus. if a firm has 4 partners, the maximum number of Tax Audits that can be taken by a firm in an assessment year would be 60*4=240. If the Firm undertakes all the 240 Tax Audit Assignments, the partners would not be in a position to undertake any tax audit assignment in their personal capacity. Now that tax audit e-filing is mandatory, the chartered accountant conducting the tax audit would also be required to prepare the tax audit report in electronic format.

An Assessee is liable for Tax Audit, if in the previous year;

  1. The Assessee is carrying on business and the total sales/turnover exceeds Rs. 1 Crore (limit increased w.e.f. 1st April 2012 or
  2. The Assessee is carrying on profession and the gross receipt exceeds Rs. 25 Lakh (limit increased w.e.f. 1st April 2012) or
  3. The Assessee is carrying on business or profession and is covered under the provision of section 44AD, 44AE, 44AF, 44BB or 44BBB and claims the income to be lower than the deemed profit and gains computed under the relevant sections.


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