Gandhidham Tax Consultants Association Urges Finance Ministry to Extend Tax Audit Report Filing Due Date Until October 31:

The Gandhidham Tax Consultants Association has requested the authorities to extend the due date for filing tax audit reports by one month, up to October 31, 2026. The association stated that Chartered Accountants (CAs) are facing significant pressure due to the limited time available for completing audit assignments.

According to the association, the extension of the due date for filing ITR-3 from July to August has reduced the time available for CAs to complete tax audits. Earlier, CAs had around two clear months, August and September, to undertake audit assignments. However, they now have only September to complete the work, which the association considers insufficient, particularly in view of the increased audit and reporting requirements.

The association further flagged that CAs are required to handle two GSTR filings during this period and prepare GST reconciliations for incorporation into tax audit reports. At the same time, they are also required to attend ongoing assessment proceedings before the Income Tax and GST authorities. Delays and limited cooperation from clients further add to the workload.

The association highlighted the fact that excessive pressure during audit completion can adversely affect the quality of audits. Further, the present situation is making it difficult for several CAs and their staff to complete audit assignments within the existing time. It also suggested that departmental statistics on pending audit report filings could demonstrate the extent of the workload.

Consequently, to resolve the issue permanently, the association proposed two changes. First, it suggested having separate due dates for different categories of taxpayers, such as July for companies, August for firms and LLPs, and October for individuals and HUFs. It also proposed that the ITR and audit report for a particular category should have the same due date.

Second, the association suggested introducing a late filing fee for delayed ITRs accompanied by tax audit reports, similar to the fee applicable to delayed TDS-TCS returns. It proposed that taxpayers could be charged a daily late fee, such as Rs 2,000 per day, instead of immediately facing penalties.

The association urged the authorities to consider the prevailing workload of CAs and extend the tax audit report filing deadline to October 31, 2026, well in advance to avoid last-minute difficulties.