Tax Audit Due Date Now October 21, 2026: Who Is Covered
October 1, 2026 · Taxation
CBDT Circular No. 07/2026 moves the AY 2026-27 tax audit date to October 21, 2026 and the ITR date to November 21, 2026 for Serial No. 2 assessees.
The Central Board of Direct Taxes (CBDT) has issued Circular No. 07/2026 (F. No. 225/128/2026/ITA-II) dated September 28, 2026, extending the Return of Income due date for Assessment Year (AY) 2026-27 for one category of assessees from October 31, 2026 to November 21, 2026. Consequently, the "specified date" for the tax audit report for AY 2026-27 moves from September 30, 2026 to October 21, 2026 . With 20 days left, this note explains who is covered, what is not extended, and what to check before filing.
What has changed
The circular is issued under Section 119 of the Income-tax Act, 1961 (the 1961 Act), read with Section 536 of the Income-tax Act, 2025. The operative text states that the CBDT "hereby extends the due date for furnishing Return of Income for the Assessment Year 2026-27 (Previous Year 2025-26) for the persons referred in sl.no.2 of the table below Explanation 2 to sub-section (1) of section 139 of the Act, from 31.10.2026 to 21.11.2026."
It then provides: "Consequently, the specified date for furnishing of report of audit for the Assessment Year 2026-27 (Previous Year 2025-26) shall stand extended to 21.10.2026 in terms of clause (ii) of Explanation to section 44AB of the Income-tax Act, 1961."
The CBDT press release of the same date, also carried by PIB on September 29, 2026, states that the "'specified date' for furnishing of the report of audit" for Serial No. 2 persons moves "from 30th September, 2026 to 21st October, 2026." The e-filing portal posted a matching news item on September 29, 2026. Under clause (ii) of the Explanation to Section 44AB, the audit report specified date is linked to the Section 139(1) return due date.
Who is covered, and who is not
Covered: Serial No. 2 of the Table below Explanation 2 to Section 139(1)
Explanation 2 to Section 139(1) of the 1961 Act was substituted by the Finance Act, 2026 with a Table of due dates. Serial No. 2 of that Table covers the following persons, where the provisions of Section 92E do not apply:
a company;
an assessee (other than a company) whose accounts are required to be audited under the 1961 Act or under any other law for the time being in force; and
a partner of a firm whose accounts are required to be audited under the 1961 Act or any other law, or the spouse of such partner where Section 5A applies.
This ordinarily includes companies, firms and LLPs subject to tax audit, individuals and HUFs in business or profession who are subject to tax audit, partners of such audited firms, and trusts whose accounts must be audited.
Not covered by the circular
Transfer pricing cases (Serial No. 1). Assessees to whom Section 92E applies, including their partners and Section 5A spouses, fall under Serial No. 1 of the Table with a return due date of November 30. The circular does not refer to Serial No. 1. Accordingly, the return due date of November 30, 2026, and the related audit and Form 3CEB date of October 31, 2026, appear unchanged.
Non-audit cases. Serial No. 3 (business or professional income without a mandatory audit, due date August 31) and Serial No. 4 (any other assessee, due date July 31) are not affected.
Interest. The circular does not expressly address interest under Section 234A for the extended period.
Key dates and rates
Category (Table below Explanation 2 to Section 139(1))
Tax audit report (Section 44AB), AY 2026-27
Return of Income, AY 2026-27
Status under Circular No. 07/2026
Serial No. 2: companies, audited non-corporate assessees and partners of audited firms (Section 92E not applicable)
October 21, 2026 (earlier September 30, 2026)
November 21, 2026 (earlier October 31, 2026)
Extended
Serial No. 1: assessees to whom Section 92E applies
October 31, 2026, including Form 3CEB
November 30, 2026
Not referred to in the circular
Serial No. 3: business or profession, accounts not required to be audited
Not applicable
August 31, 2026 (already elapsed)
Not affected
Serial No. 4: any other assessee
Not applicable
July 31, 2026 (already elapsed)
Not affected
Under Section 271B, failure to get accounts audited or to furnish the audit report attracts a penalty of one-half per cent of total sales, turnover or gross receipts, or INR 1,50,000/-, whichever is less, subject to reasonable cause under Section 273B.
Other audit reports linked to the specified date
Several other reports under the 1961 Act are due on or before the "specified date" referred to in Section 44AB, or shortly before the Section 139(1) due date. Common examples include Form 29B under Section 115JB, Form 10CCB for certain deductions, and Forms 10B or 10BB for trusts and institutions. The circular title refers to "various reports of audit", but the operative text names only the Section 44AB specified date. Whether each such report moves to October 21, 2026 depends on the governing provision.
Practical impact
For companies
The audit report (Form 3CA with 3CD) and dependent reports such as Form 29B should be planned for upload and acceptance on or before October 21, 2026.
Companies with international transactions or specified domestic transactions under Section 92E remain on the separate October 31, 2026 and November 30, 2026 timeline.
For firms, LLPs, proprietors and their partners
Audited firms, LLPs and proprietary businesses obtain the same October 21, 2026 audit date and November 21, 2026 return date.
Partners of audited firms (and Section 5A spouses) also fall under Serial No. 2, so their individual returns are due on November 21, 2026.
For trusts and institutions
Trusts and institutions whose accounts are required to be audited may fall within Serial No. 2. The due date for Form 10B or 10BB should be checked separately, as it is linked to the return due date under the relevant provisions.
Points the circular does not address
The circular is silent on interest under Section 234A. Where self-assessment tax is payable, assessees may wish to consider paying it by October 31, 2026 pending clarity.
The circular cites Section 536 of the Income-tax Act, 2025, under which proceedings for earlier years continue under the 1961 Act. Corresponding 2025 Act provisions on audit and return filing should be confirmed before relying on cross-references.
Checklist before October 21, 2026
Confirm whether the assessee falls under Serial No. 1 or Serial No. 2, by checking for any international transaction or specified domestic transaction requiring a Section 92E report.
Ensure the auditor is added as a Chartered Accountant on the e-filing portal for the relevant form and AY.
Reconcile turnover, GST returns (GSTR-1, GSTR-3B and GSTR-9 where applicable) and books with Form 3CD disclosures.
Reconcile TDS and TCS data with Form 26AS and the Annual Information Statement (AIS), and check reporting of defaults under the relevant clauses of Form 3CD.
Review payments to micro and small enterprises and the disallowance under Section 43B(h) for delays beyond the time allowed under the MSMED Act, 2006.
Prepare dependent reports (for example Form 29B or Form 10CCB) in parallel and verify their due dates on the portal.
Obtain the assessee's acceptance of the uploaded report on the portal, since a report is treated as furnished only after acceptance by the assessee.
Compute self-assessment tax and decide on payment timing in light of the Section 234A position.
Key takeaways
CBDT Circular No. 07/2026 dated September 28, 2026 extends the AY 2026-27 return date for Serial No. 2 assessees to November 21, 2026.
The tax audit report date under Section 44AB for the same persons is now October 21, 2026.
Transfer pricing cases under Serial No. 1 are not referred to in the circular, and their October 31, 2026 and November 30, 2026 dates appear unchanged.
The circular does not address Section 234A interest, and due dates of other linked reports should be checked form by form.
Sources
CBDT Circular No. 07/2026 dated September 28, 2026 (incometax.gov.