Income tax audit last date: 21 Oct is deadline; last-minute checklist for taxpayers before submission | List from expert

With the tax audit report deadline of 21 October approaching, taxpayers need to check their books, reconcile turnover and GST records, review key Form 3CD disclosures, and confirm portal submission. Here are the checks an expert suggests taxpayers should complete before filing.

The tax audit report deadline for AY 2026-27 was earlier extended from 30 September to 21 October 2026. With the new deadline approaching, taxpayers need to complete a few last-minute checks before submission to ensure that everything is in order and they remain on track to file their income tax return (ITR) by the extended deadline of 21 November 2026.

Here's the last-minute checklist suggested by an expert.

What are the key checks taxpayers should complete before filing the tax audit report?

Siddharth Maurya, Founder and Managing Director, Vibhvangal Anukulara, suggested that taxpayers should complete the following checks before their chartered accountants (CAs) file the tax audit report on the income-tax portal.

Finalise the books of accounts: Ensure that the books have been finalised and that all financial information being reported is complete and accurate.

Reconcile turnover and revenue: Match the turnover reported in the books of accounts with GST returns, sales invoices, and bank statements.

Review expenses and liabilities: Check expense claims, outstanding obligations, loans, and fixed assets. Ensure that depreciation has been calculated in accordance with the applicable policy and tax rules.

Which disclosures and clauses in the tax audit forms require special attention?

Maurya said that for FY 2025-26, taxpayers subject to tax audit under the applicable provisions of the Income-tax Act, 1961, must furnish Form 3CA along with Form 3CD if their accounts are audited under another law. In other cases, Form 3CB must be furnished along with Form 3CD.

Check tax audit applicability: A tax audit is generally required if business turnover exceeds ₹1 crore. The threshold can increase to ₹10 crore if cash receipts and payments do not exceed 5% of the respective totals. For professionals, the gross receipts threshold is ₹50 lakh.

Review Form 3CD disclosures: Pay attention to turnover, accounting methods, depreciation, specified payments and receipts, loans and deposits, and related-party transactions.

Review expenses and reconcile TDS/TCS: Check personal expenditure, non-deductible expenses, and restricted payments. Reconcile TDS/TCS records with challans, returns, and tax certificates to identify short deductions, delayed deposits, and reporting errors.

Reconcile turnover: Differences between books of account and GST returns may arise from credit notes, advances, timing differences, or other adjustments. Analyse these discrepancies and maintain supporting explanations.

Check Form 3CD amendments: Changes cover reporting requirements for MSME payments, liabilities under Section 43B, specified expenditure, loans and deposits, and share buybacks. These may require more detailed transaction-level records.

Focus on amended clauses: Key changes concern Clauses 12, 19, 21, 22, 26 and 31. Clause 22 expands reporting on payments to micro and small enterprises, while Clause 31 requires detailed reporting of loans, deposits and specified transactions. Clauses 28 and 29 have been removed, and Clause 36 has been introduced to report share buybacks and related deemed-dividend implications.

What is the final step taxpayers should not miss?

Maurya said filing the tax audit report by the CA is not the final step for the taxpayer. The taxpayer must log in to the income-tax e-filing portal, go to "Pending Actions," and select "Worklist."

Under "Pending for Acceptance", click "Accept" against the Form 3CA-3CD submitted by the CA. The taxpayer must then complete the required verification.

"If the report is rejected, remains pending, or contains an error, taxpayers should immediately contact their CA to identify and resolve the issue. The CA may need to correct the report or take the necessary steps to address system-related validation issues," he added.

In case of portal-related problems, Maurya advised taxpayers to retain evidence of their filing attempts. This may include screenshots of error messages, helpdesk communications and records of attempted submissions.

What are the consequences of missing the tax audit deadline?

Maurya said that failure to comply with tax audit reporting requirements may attract a penalty under Section 271B of the Income-tax Act, 1961.

The penalty is 0.5% of total sales, turnover or gross receipts, subject to the statutory maximum applicable for the relevant assessment year. However, relief is available under Section 273B where the taxpayer establishes a reasonable cause for the failure. The decision rests with the tax authorities, based on the facts and circumstances of the case.