With the September 30 tax audit deadline for assessment year (AY) 2026-27 approaching, taxpayers with business or professional income covered under tax audit need to complete the compliance process without waiting for a possible extension.
Several chartered accountant and tax professional associations have sought an extension of the deadline to October 31, citing the time required for reconciliation, verification and other audit-related work. The demand has also surfaced on social media. However, there has been no formal announcement extending the tax audit deadline so far.
This means taxpayers should continue working towards the September 30 deadline unless the Central Board of Direct Taxes (CBDT) announces a change.
Tax audit deadline: Do not confuse it with ITR filing date
For taxpayers whose accounts are subject to audit, the tax audit report is currently due by September 30, 2026. The corresponding income-tax return is due by October 31, 2026.
The audit process is not limited to uploading the report. Taxpayers need to ensure that the information in their books, financial statements, tax audit report and eventual ITR is consistent.
A taxpayer should therefore not wait until the last few days to identify mismatches between accounting records and tax filings.
Check Form 26AS, AIS and TIS
Taxpayers should also reconcile tax-related information available with the Income Tax Department.
This includes checking TDS and TCS credits against Form 26AS, the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS). These records should broadly correspond with the taxpayer’s books and supporting documents.
Any difference in tax credits should be investigated before filing the ITR rather than discovered later during processing.
Review expenses and possible disallowances
Another important check is whether expenses reported in the accounts require tax adjustments.
Certain expenses may need to be added back while calculating taxable income, including expenditure affected by TDS defaults, specified cash-payment restrictions, delayed statutory payments and certain payments to micro and small enterprises.
Taxpayers should ensure that these adjustments are correctly reflected in the tax computation and are consistent with the disclosures made in the tax audit report.
Check losses and depreciation
Brought-forward losses and unabsorbed depreciation should also be reviewed before the ITR is filed.
Incorrect reporting of brought-forward losses, depreciation or other tax adjustments can create a difference between the tax audit report and the return. Taxpayers should therefore compare the current year’s computation with earlier records before carrying forward any figures.
Should taxpayers wait for an extension?
Professional bodies and tax practitioners have sought an extension of the September 30 deadline to October 31. Their representations have cited the workload involved in reconciliation, verification and audit compliance, along with the availability of tax utilities and the time required to complete the process.
However, a request for an extension does not change the existing deadline.
Unless the CBDT formally announces an extension, September 30 remains the applicable deadline for the tax audit report for AY 2026-27. Taxpayers covered by audit should therefore continue preparing their reports accordingly.
