Tax audit report due 21 October: a last-week checklist for business owners

What changed

On 28 September 2026 the Central Board of Direct Taxes (CBDT) announced a 21-day extension through a press release and Circular No. 07/2026. It covers taxpayers whose accounts must be audited under the Income-tax Act, 1961: the tax audit report moves to 21 October, and their income tax return moves to 21 November 2026.

The extension was granted once. Don't plan on another one.

Does this apply to you?

Broadly, a tax audit is needed if your business turnover is above ₹1 crore (₹10 crore if almost all your receipts and payments are digital), or if you are a professional with receipts above ₹50 lakh. Some smaller businesses that declare lower profits than the presumptive rates also need one. Your CA will confirm where you stand.

Your checklist for this week

1. Call your CA today. Ask one question: "What do you still need from me?" Most delays are missing papers, not the audit itself.
2. Close your books for 2025-26. Bank reconciliations for every account, loan statements, and closing stock value signed off.
3. Match GST with your books. Turnover in your GST returns should agree with your accounts. Explain any gap in writing.
4. Check TDS. Download Form 26AS and the AIS, and match the TDS credits against your sales and receipts.
5. List payments to MSME suppliers. Payments to micro and small suppliers beyond 45 days must be reported, and the unpaid amount can't be claimed as an expense for the year.
6. Book the ITR slot now. Fix a date with your CA before 21 November for the return, and keep money aside for any tax due.

What if you miss it?

Not filing the audit report on time can attract a penalty of up to ₹1.5 lakh. A late return also brings interest on any unpaid tax and a late fee. It's cheaper to file a day early than a day late.

Want help getting your numbers and paperwork in order for next year? Book a free discovery call.