Tax audit deadline September 30: Professionals seek October 31 extension; what taxpayers should do

The latest market report highlights that With the September 30 deadline for filing tax audit notes for assessment year (AY) 2026-27 approaching, tax professionals and several industry associations are seeking more time to complete the compliance process. The proposed extension is to October 31, but the deadline has not been changed yet.

Several chartered accountant and tax professional associations have made representations to the government, while tax professionals and taxpayers have additionally taken to social media platform X to seek an extension. They have cited the workload involved in reconciliation, verification and completion of audit-related compliances within the existing timeline.

Associations including the All India MSME and Tax Professionals Association, Chartered Accountants Association, Jalandhar, Rajasthan Tax Consultants Association, Professional Accountants Group, Punjab Accountants Association and others are among those seeking an extension to October 31. Some have additionally sought more time for related forms such as Forms 10B and 10BB.

Why professionals want more time

A tax audit involves more than preparing and uploading the audit report. Taxpayers and their auditors have to reconcile books with GST returns, verify TDS and TCS details, check Form 26AS, Annual Information Statement (AIS) and Taxpayer Information Summary (TIS), and match bank transactions with the books.

Details relating to set assets, loans, statutory dues, related-party transactions, expenses and other disclosures additionally need to be checked before the report is finalised. Professionals have pointed to portal-related issues, reconciliation challenges and the availability of tax utilities as additional reasons for seeking more time.

Tax audit deadline stays September 30

Despite the requests, September 30, 2026 stays the applicable deadline for the tax audit report for AY 2026-27. The corresponding deadline for filing the income tax return for taxpayers whose accounts are subject to audit is October 31, 2026.

Taxpayers should as a result not assume that the October 31 tax audit deadline has been approved merely because professional bodies are seeking it on social media. The extension will apply only if the Central Board of Direct Taxes (CBDT) formally announces a change.

Taxpayers covered by tax audit should complete their pending work instead of waiting for an extension. They should ensure that books of accounts, sales and purchase records, bank statements, invoices and supporting documents are ready.

They should additionally reconcile GST turnover, verify TDS/TCS details and ensure that information in AIS, TIS and Form 26AS matches their records. Any major or unusual transactions, related-party dealings, set assets, loans and expenses requiring tax-disallowance analysis should be reviewed with the auditor.

The tax audit report and ITR should additionally be consistent, particularly on turnover, expenses, deductions, tax disclosures and brought-forward losses.

Taxpayers should additionally remember that after the chartered accountant uploads the audit report electronically, the taxpayer has to approve it through their income-tax e-filing account. As a result, sufficient time should be kept for this final step as well.