Karnataka Taxpayers Association Seeks Extension of Tax Audit Report Due Date to October 31:

The Karnataka Taxpayers Association has issued a representation dated September 21, 2026, addressed to the Honourable Minister of Finance, urging the government to extend the due date for filing Tax Audit Reports (TARs) for the Assessment Year 2026-27.

At the start of the representation, the association showed its appreciation towards the government's effort to shift the Income Tax Return (ITR) filing deadline for non-audit cases from July 31 to August 31, providing taxpayers sufficient time to complete the compliance process. However, this move has inadvertently compressed the time to furnish a Tax Audit Report (TAR). Taxpayers who file TAR are now left with only one month, from August 31 to September 30.

This tight compliance time limit and several practical difficulties/challenges have amounted to pressure on taxpayers and tax professionals. The Association further highlighted the delayed release of ITR forms and related utilities as a major difficulty. It noted that ITR-3 was released on June 18, ITR-5 on July 7, ITR-7 on July 9, and ITR-6 on August 4, 2026. The Association stated that online filing utilities were made available 15 to 20 days after the respective forms in several cases, further reducing the time available for preparing and verifying audit-related information.

Another concern raised was the increased compliance burden on non-corporate taxpayers. The Association said that the mandatory detailed financial statement format introduced by the Institute of Chartered Accountants of India (ICAI) requires taxpayers to provide substantially more financial information. This has increased the time required for reconciliation, verification and completion of tax audits.

The Association clarified that the requested extension is not intended to delay tax payments or provide any undue benefit to taxpayers. It stated that additional time is needed to ensure that Tax Audit Reports (TARs) are prepared accurately and completely with proper professional diligence.

Accordingly, the association requested the government to extend the Tax Audit Report due date for AY 2026-27 from September 30 to October 31, 2026. It has also proposed that the Union Budget 2027 permanently prescribe October 31 as the statutory due date for both Tax Audit Reports and ITRs applicable to audit cases.