Tax Audit Due Date Extension AY 2026-27 Haryana Professionals Request

What Happened?

Haryana tax bar associations and professional bodies have submitted a formal request to the Central Board of Direct Taxes (CBDT) seeking an extension of at least 30 days beyond the current due date of 30 September 2026 for filing Tax Audit Reports under Assessment Year 2026-27. This request comes as audit firms and tax professionals across the state face mounting pressure to complete simultaneous compliance requirements within tight timelines.

Background & Legal Context

Under the Income Tax Act 2025, Section 44AB mandates that certain businesses and professionals must get their accounts audited and submit Tax Audit Reports by 30 September of the financial year following the relevant assessment year. For AY 2026-27 (FY 2025-26), this deadline falls on 30 September 2026.

Who Must File Tax Audit Reports?

• Businesses with turnover exceeding ₹5 crore (or ₹2 crore for professionals) in the relevant financial year
• Partnership firms with specified turnover limits
• LLPs and other business entities meeting threshold criteria
• Tax audit under Section 44AB requires a Chartered Accountant to verify accounts and issue the audit report in Form 10B

The legal framework also requires Tax Audit Reports to be filed along with the Income Tax Return (ITR) by the same deadline. Failure to file within the due date can result in:

• Penalties under Section 271B of the Income Tax Act 2025 (up to ₹25,000 or more)
• Disallowance of claimed deductions
• Assessment at higher income levels without giving due credit
• Interest charges under Section 234A on delayed payment of tax

The previous Income Tax Act 1961 had similar provisions, which continue to be relevant for understanding established case law and principles, though the 2025 Act supersedes it.

Why Is This Extension Request Important?

The Haryana tax professionals argue that the 30 September deadline creates unrealistic pressures, especially when:

• GST Compliance Overlaps: Businesses must simultaneously file GSTR-1, GSTR-3B, and other GST returns with tight deadlines, stretching both accounting teams and audit firms
• Year-End Financial Close: Many businesses are still closing their books and finalizing accounts till late August, leaving limited time for audit completion
• Documentation Requirements: Complex businesses with multiple transactions need extensive verification under Section 44AB audit scope
• Resource Crunch: The surge in audit assignments during this period creates bottlenecks, with qualified auditors becoming unavailable
• Technology Integration: Digital compliance, e-invoicing adjustments, and reconciliation processes add complexity to the audit timeline

This is a reasonable concern that affects genuine business compliance rather than representing any intent to delay legitimate tax obligations.

What Does This Mean for You?

For Businesses Subject to Tax Audit:

Until the CBDT issues any formal circular or notification accepting this extension request, you must assume the 30 September 2026 deadline remains unchanged. Planning your compliance calendar accordingly is critical:

• Finalize your financial accounts by mid-August 2026 to give your auditor adequate time
• Prepare all required documentation (vouchers, reconciliations, investment proofs, foreign remittance records) well in advance
• Engage your Tax Audit CA early (by June 2026 at the latest) to ensure availability
• Do not depend on a likely extension; treat 30 September as the hard deadline for now

For Tax Audit Chartered Accountants:

• Start accepting audit assignments as early as possible (April-May 2026)
• Block your schedules to avoid overcommitment near the deadline
• Communicate realistic timelines to clients based on their business complexity
• Maintain a buffer of at least 2-3 weeks before 30 September for final report issuance and corrections

Practical Impact:

If an extension is ultimately granted, it would provide breathing room—but filing early remains the safest strategy. Late filings attract penalties even if the deadline is extended later. Filing immediately after the originally announced deadline minimizes risk.

What Should You Do Now?

Immediate Actions (September 2026):

1. Confirm Your Audit Obligation: Check whether your turnover crosses the Section 44AB threshold. If yes, engage a Tax Audit CA immediately if not already done
2. Gather Documents: Prepare all original financial records, vouchers, bank statements, investment proofs, and transaction details
3. Monitor CBDT Notifications: While we will update you on any formal circular, regularly check the CBDT website for any extension announcement. Do not rely on informal news
4. Plan Your ITR Filing: Since Tax Audit Report must be attached with your ITR, align both filings. Do not separate them
5. Professional Engagement: Ensure your auditor is experienced with your industry and understands the specific complexities of your business

If Extension Is Announced:

• Do not delay—still file as soon as your audit is complete, ideally before the original deadline
• An extension is a safety net, not permission to procrastinate
• Use any granted extension only if genuinely needed for genuine business complexity

Documentation Checklist for Tax Audit:**

• Complete audited financial statements (Balance Sheet, P&L, Notes)
• All bank reconciliations and cash flow schedules
• Investment portfolio details and proof documents
• All inter-company or inter-personal loan agreements and evidence of repayment
• Foreign remittance and FEMA compliance records
• GST/Income Tax paid challan copies
• Any litigation or contingent liabilities disclosure