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Income Tax Audit Deadline: Who Must File By September 30?
An income tax audit checks whether the financial details given by a taxpayer are correct.
Some businesses and professionals must get their accounts checked by a chartered accountant.
Usually, businesses with turnover above Rs.
1 crore and professionals earning more than Rs.
50 lakh from their work must do this.
The business limit can rise to Rs.
10 crore when most receipts and payments are not in cash.
Certain people using or leaving special presumptive tax schemes may also need an audit.
For Assessment Year 2026–27, the normal audit report deadline is September 30, 2026.
The chartered accountant files the report online, and the taxpayer must approve it on the tax portal.
Missing the deadline can lead to a penalty, although reasonable cause may provide relief.
Taxpayers subject to audit under Section 44AB must have their accounts audited and submit an audit report.
Business owners generally face the audit requirement above Rs. 1 crore in turnover, while the threshold rises to Rs. 10 crore when cash receipts and payments remain within 5%.
Professionals must obtain an audit when annual gross receipts exceed Rs. 50 lakh.
For Assessment Year 2026–27, the standard tax audit report deadline is September 30, 2026; transfer-pricing cases have an October 31 deadline.
Late filing can attract a penalty of 0.5% of sales, turnover, or gross receipts, capped at Rs. 1.5 lakh, unless reasonable cause is established.
- Who
- Businesses, professionals, and taxpayers covered by the Section 44AB audit rules.
- What
- They must have eligible accounts audited and file the prescribed tax audit report.
- Where
- The report is electronically filed with the Income Tax Department through its e-filing portal.
- When
- The standard deadline for Assessment Year 2026–27 is September 30, 2026; transfer-pricing cases have a deadline of October 31, 2026.
- Why
- The audit helps tax authorities assess income and tax liabilities using verified financial details.
Key facts
- Relevant provision
- Section 44AB of the Income Tax Act
- Business threshold
- More than Rs. 1 crore in annual sales, turnover, or gross receipts
- Higher business threshold
- Rs. 10 crore when cash receipts and payments do not exceed 5% of the relevant totals
- Professional threshold
- More than Rs. 50 lakh in annual gross receipts
- Standard audit deadline
- September 30, 2026, for Assessment Year 2026–27
- Transfer-pricing deadline
- October 31, 2026, for Assessment Year 2026–27
- Maximum penalty
- Rs. 1.5 lakh under Section 271B, subject to reasonable-cause relief under Section 273B
Sources
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