Attention CAs: ICAI releases Exposure Draft on Tax Audit Guidance Note for AY 25-26:

ICAI issues Exposure Draft of Tax Audit Guidance Note under Section 44AB for AY 2025-26. Know key updates

Tax Audit Guidance Note AY 25-26

CA Pratibha Goyal

Jul 4, 2025

Last update on Jul 4, 2025

Attention CAs: ICAI releases Exposure Draft on Tax Audit Guidance Note for AY 25-26 The Exposure Draft on Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961, is finally out. It is shared by the Direct Taxes Committee of the Institute of Chartered Accountants of India. The draft guidance note is aimed at seeking public comments. Once the Guidance note is released, it aims to provide assistance to Chartered Accountants (CAs) in conducting Tax Audits. The new guidance note will be aligned with changes made by the Finance Act 2025 and the amendments made by the CBDT in tax audit forms. Tax Audit Limit Recently, ICAI has announced a new rule that no CA will be able to do more than 60 Tax Audits. As per the announcement, ICAI is imposing a limit on the number of tax audits a chartered accountant partner can take per year. The new change will come into effect from the financial year 2026-27. With this new rule, the partner in the accounting firm will be able to do only 60 audits annually. The initiative aims at boosting work accountability in audit and promoting transparency within the organisation.

About Author

CA Pratibha Goyal

Co Founder

CA Pratibha Goyal is Chartered Accountant qualified in 2016, is a Member of The Institute of Chartered Accountants of India having wide experience in the field of Auditing, Taxation, ROC, GST and Secretarial matters etc. She has written over a thousand articles & has made several videos on topics related to Auditing & Taxation. As a Speaker she has delivered various sessions on various branches of NIRC of ICAI.