📌 Tax Audit Limit – Important Amendment Clarification Quite a few students asked me this tricky amen

📌 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 😊❤️