From September 30 to October 31? Tax Bar Seeks More Time for Tax Audit Reports:

The Tax Bar Association, Bhilwara, has requested the Central Board of Direct Taxes (CBDT) to extend the deadline for filing tax audit reports for Assessment Year 2026-27 by one month. In a representation dated September 14, the association has sought extension of the due date from September 30, 2026, to October 31, 2026, for Tax Audit Reports in Forms 3CA/3CB along with Form 3CD and applicable audit reports in Forms 10B/10BB.

The association, which represents around 250 members, said tax professionals and taxpayers are facing several practical difficulties in completing audits within the existing deadline. It pointed out that the income-tax return utilities required for audited cases were made available in stages. According to the representation, ITR-3 was initially available on June 18, ITR-5 on July 7 and ITR-6 on August 4, with some utilities subsequently updated on September 1. This, it said, reduced the effective time available to professionals to complete audits properly.

The association said tax audit work cannot be separated from the preparation and filing of income-tax returns. The process involves preparing financial data, checking various details, running validations, digitally signing the reports and getting them approved by taxpayers. Frequent changes or updates in the online utilities can also force professionals to recheck and modify work already completed.

Another major concern raised by the association is the revised ICAI requirements for financial statements of non-corporate entities. The revised Guidance Note on Financial Statements of Non-Corporate Entities has increased the work involved in preparing and reviewing financial statements. The association said these additional requirements directly affect the time needed to complete the related tax audits.

The association also highlighted the change in the due date for non-audit business and professional income-tax returns for AY 2026-27. The deadline for such taxpayers was extended from July 31 to August 31, 2026. While welcoming the move, the association said it has effectively reduced the time available to Chartered Accountants who handle both audit and non-audit assignments, particularly during August and September.

According to the representation, taxpayers requiring tax audits often rely on the same professionals who handle their accounts, financial statements, GST and TDS reconciliations and income-tax compliance. As a result, the additional month given to non-audit taxpayers has concentrated a large amount of professional work into the period immediately before September 30.

The association further said that tax audit is not simply a matter of uploading Form 3CD. It requires detailed checking and reconciliation of books of accounts, financial statements, GST returns, TDS/TCS records, AIS/TIS information, fixed assets and depreciation, loans and investments, related-party transactions and other statutory disclosures. Any mismatch may require additional documents, explanations and discussions with the taxpayer.

Emphasising the importance of audit quality, the association said Chartered Accountants need sufficient time to verify information, reconcile figures, discuss discrepancies with taxpayers and exercise professional judgment. A very tight deadline could increase the chances of errors and omissions, which may ultimately affect the quality of information available to the Income Tax Department.

The representation also sought an extension for Forms 10B and 10BB, which involve detailed reporting and certification requirements for eligible charitable and religious trusts, institutions and other specified entities. The association said these forms also require substantial financial and statutory information to be compiled and verified.

The Tax Bar Association has requested the CBDT to use its powers under Section 119 of the Income-tax Act, 1961, and extend the relevant deadlines to October 31, 2026. It said the request is not intended to reduce statutory compliance but to ensure that tax audits and reports are completed accurately, completely and with proper professional verification.