ICAI Clarifies UDIN Ceiling for Tax Audits: Only Select Forms Count Towards 60-Assignment Limit:

ICAI Clarifies UDIN Ceiling for Tax Audits: Only Select Forms Count Towards 60-Assignment Limit The Institute of Chartered Accountants of India (ICAI) has released some frequently asked questions (FAQs) on the ceiling for UDIN generation under tax audits. According to the institute, for implementing the limit on tax audit assignments through the UDIN system, only certain sub-categories under “GST & Tax Audit” will be counted for the computation of the ceiling. These sub-categories on which a ceiling will apply include Form 3CA - 3rd proviso to section 44AB, Form 3CB - Section 44AB(a), Form 3CB - Section 44AB(b), and Form 3CB (Combined) under section 44AB.

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The ceiling will not apply to all the subcategories other than the aforementioned one, including Form 3CB - Section 44AB(c), Form 3CB - Section 44AB(d), and Form 3CB - Section 44AB(e). A Chartered Accountant (CA) is allowed to accept a maximum of 60 tax-audit assignments in a financial year. This change has been made effective from April 01, 2026. These revisions have been mentioned in the "Chartered Accountants (Limit on Number of Tax Audits) Guidelines, 2025", published in the Gazette of India.

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The ICAI has clarified in FAQs that a ceiling of 60 assignments will be applicable per member in a financial year at the time of UIDIN generation under a tax audit. It has further been clarified that the ceiling will depend on the date of signing of the Tax Audit Report during the financial year and not on the date of UDIN generation. Refer to the officially released FAQs for complete clarification.