**Tax Audit Limit – Important Amendment Clarification**

Quite a few students asked me this tricky amendment-based doubt, so thought of clarifying it once properly 

Case: A CA firm has 3 eligible partners and the **firm accepts 45 tax audits.** Internally, 15 are allocated against each partner’s capacity.
**Can one partner sign all 45?**

 **Based on the amended Guidelines as presently worded - YES**, provided that partner’s **aggregate counted tax audits signed during the FY do not exceed 60**.

Why?
**Guideline 12.2** specifically says that, while computing the limit, assignments **accepted by the member OR by any partner** of his firm are to be taken into account.

The amendment saying that the “**limit cannot be distributed/shared between partners**” means that one partner cannot use another partner’s unused limit to **cross his own ceiling of 60**.

So: _45 signed by one partner →  within 60
75 signed by one partner →  not allowed, even if other partners have unused limits_

 **Important distinction**: This applies where the **firm itself has accepted the assignments**. If A, B and C have separately accepted assignments **in their individual capacities**, the position is different and should not be mixed with firm assignments.

This is a new amendment area, so wording matters a lot. Unless ICAI issues any further specific clarification, this is how I would read the notified provisions.

**Read the provision, not just the conclusion**. 

More Tricky Traps on the way