Tax audit deadline September 30: Professionals seek extension as due date draws closer

According to fresh market updates, Taxpayers covered by tax audit for assessment year (AY) 2026-27 have less than two weeks to complete the audit process, with the deadline set for September 30. As the date approaches, several tax professionals and associations have sought an extension, with October 31 being suggested as the revised deadline.

The demand has additionally advanced traction on social media, with tax professionals posting on X for additional time. Several professional associations have made representations to the government, citing the time required for reconciliation, verification and completion of audit-related compliances. That stated, there has been no official announcement extending the September 30 deadline so far.

The All India MSME and Tax Professionals Association, Chartered Accountants Association, Jalandhar, Rajasthan Tax Consultants Association (RTCA), Professional Accountants Group, Punjab Accountants Association, CCATAX – Chandigarh Chartered Accountants Taxation Association, Tax Bar Association, Bhilwara, Haryana State Tax Bar Association, Bikaner Tax Consultants Association, Maharshi Bhardwaj Chartered Accountants’ Association, Prayagraj, A.P. Tax Practitioners and Consultants Association (APTPCA) are among those seeking an extension.

Why are tax professionals seeking an extension?

For AY 2026-27, taxpayers with business or professional income who are subject to tax audit have to get their audit report completed by September 30. The process involves more than simply preparing and uploading the report.

Taxpayers and chartered accountants need to reconcile the books of accounts with GST returns, bank transactions and tax records. They additionally have to verify information available in Form 26AS, the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS).

Professional bodies have additionally pointed to the workload involved in checking tax deductions, statutory dues, related-party transactions, set assets, loans and other disclosures before the audit report is finalised.

What should taxpayers check before filing the audit report?

Taxpayers should ensure that their books of accounts and supporting documents are complete. This includes sales and purchase registers, cash and bank books, ledgers, invoices, agreements, vouchers and payment records.

A final reconciliation with GST filings is important, particularly for turnover and expenditure. Taxpayers should additionally check TDS and TCS compliance and ensure that the tax credits appearing in Form 26AS, AIS and TIS are consistent with their records.

Significant or unusual transactions during the financial year additionally require attention. These could include major restructuring transactions, related-party dealings, unusual expenses or international transactions. Such items should be discussed with the tax auditor and properly documented before the report is filed.

Tax audit report and ITR must match

Another important check is consistency between the tax audit report and the income-tax return. Differences in turnover, expenses, tax deductions, withholding-tax disclosures, statutory dues or brought-forward losses could lead to queries from the tax authorities.

The tax audit report is due by September 30, while the corresponding ITR deadline for taxpayers whose accounts are subject to audit is October 31, 2026.

For now, taxpayers should not treat October 31 as the tax audit deadline. Unless the Central Board of Direct Taxes (CBDT) formally announces an extension, September 30 stays the applicable deadline for the audit report.