Tax practitioners have urged the CBDT to extend the September 30 audit report deadline for Assessment Year 2026-27. They cite complex data reconciliation tasks, such as GST and TDS verification, as the main challenge. With no official extension announced, taxpayers are advised to follow the existing schedule to avoid potential penalties.
Tax professionals and chartered accountant groups are urging the Central Board of Direct Taxes to move the September 30 deadline for filing audit reports for Assessment Year 2026-27. The request, which seeks an extension until October 31, highlights the difficulty in meeting current compliance requirements within the existing timeframe.
The core of the issue lies in the complexity of modern tax audits. Practitioners are pointing to the time needed to reconcile turnover figures across different systems, including GST returns, TDS data, and information available in the Annual Information Statement and Form 26AS. Additionally, verifying bank statements against business books and ensuring accurate disclosures for MSME payments and related-party transactions has added significant pressure. Some industry bodies also noted that the later-than-expected release of certain tax forms and utility software has made it harder to complete the process smoothly.
Despite these requests, the Central Board of Direct Taxes has not issued any notification to change the September 30 deadline. Taxpayers covered under Section 44AB of the Income Tax Act remain legally required to submit their audit reports by the original due date. While the final income tax return filing date for those under audit is later, the audit report itself must be finalized first.
Relying on reports of a potential extension can be risky for businesses and individual taxpayers. Waiting for an official announcement that may not happen could lead to missed deadlines and penalties. Financial experts suggest that entities should prioritize completing their audits based on the current September 30 schedule. If an extension is granted later, it would provide additional time, but planning for the current deadline is the safest course of action to maintain compliance and avoid unnecessary procedural issues.