For taxpayers subject to a tax audit, two important deadlines are approaching for the Assessment Year 2026-27. Taxpayers need to submit their tax audit on Sept. 30. The due date to file the income tax return (ITR) is Oct. 31.
The ITR filing deadline is valid for taxpayers who need to submit a tax audit report due to the nature of their business activity and turnover or gross receipts.
Businesses whose accounts need to be audited under Section 44AB generally have to submit their ITR by Oct. 31. The deadline also applies to professionals whose income meets the conditions for a tax audit.
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Businesses usually need to file a tax audit report if their profits exceed Rs 1 crore in a financial year. However, this limit goes up to Rs 10 crore if the cash receipts and cash payments levels are less than 5% of the total receipts and payments of the business.
For professionals, the threshold for requiring a tax audit is Rs 50 lakh in gross receipts.
This deadline also applies to taxpayers who are opting out of presumptive taxation schemes such as Sections 44AD, 44ADA, 44AE, 44BB, and 44BBB.
Tax Audit And ITR Filing Process Explained
Taxpayers must first get their account books audited by a chartered accountant. The process involves verifying financial information, including turnover, receipts, and expenses.
The audit reports must be filed electronically using forms such as Form 3CA and Form 3CB.
Once finalised, the tax audit report must be uploaded to the income tax portal by Sept 30.
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Taxpayers need to then prepare and reconcile their ITR with the audited figures and tax records. They have to pay any dues and file and verify the return by Oct. 31.
If they spot an error in the audit report after it is uploaded, taxpayers should notify their CA. If applicable, the accountant must submit a revised report, after which the ITR should be finalised with the audit report.
What Happens If The Tax Audit Report Is Not Filed?
Failure to submit the tax audit may attract a penalty under Section 271B of the Income Tax Act.
The fine can be equal to 0.5% of total sales, turnover or gross receipts, capped at a maximum of Rs 1,50,000.
No penalty is applicable if the taxpayer has established a reasonable cause for the failure under Section 273B.
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