Zila Tax Bar Association Seeks Extension of Tax Audit Report Due Date Until October 31, Citing Compliance Challenges:

The Zila Tax Bar Association, Rudrapur (Udham Singh Nagar, Uttarakhand), has sent a representation to the Central Board of Direct Taxes (CBDT), Ministry of Finance (Department of Revenue), Government of India, requesting to extend the due date for filing Tax Audit Reports (TARs) and Income Tax Returns (ITRs) for Assessment Year 2026-27 (Financial Year 2025-26).

The Association has requested that the due date for furnishing Tax Audit Reports be extended up to 31st October 2026. It has also sought a suitable extension for filing Income Tax Returns (ITRs) of taxpayers covered under tax audits, citing practical difficulties being faced by taxpayers and tax professionals.

The representation states that tax audit work involves detailed verification of books of accounts, GST returns, TDS and TCS statements, AIS, TIS, Form 26AS, bank transactions, depreciation, statutory dues, loan and interest details and other disclosures required under Form 3CD. Completing these checks within the available time requires substantial professional effort.

The Association also highlighted the time required for reconciling GST records with books of accounts, sales and purchase details, input tax credit, TDS/TCS information and income tax records. Mismatches often require taxpayers to provide additional documents and clarifications before the audit report can be finalised.

According to the representation, taxpayers and professionals residing in Uttarakhand face additional challenges due to geographical conditions, monsoon-related disruptions, transportation issues and difficulties in accessing records and professional resources. These factors have further reduced the time limit for Uttrakhand residents to file tax audit reports.

The Association further pointed out that tax professionals are simultaneously required to handle compliances under Income Tax, GST, TDS/TCS, Companies Act, PF, ESI and other laws. It stated that additional time would allow proper verification and reduce the possibility of errors, omissions, rectifications and avoidable litigation.

The representation also emphasised that Tax Audit Reports contain several detailed disclosures and require proper examination before submission. Additional time, it said, would help professionals address technical issues, data mismatches and delays in receiving information.

In its prayer, the Zila Tax Bar Association, Rudrapur, requested CBDT to extend the Tax Audit Report due date for AY 2026-27 to 31st October 2026 and provide a suitable extension for the corresponding audited Income Tax Returns. It also urged the Board to consider regional difficulties while prescribing compliance timelines in the future.