Tax audit report by 30 September, ITR by 31 October for audit cases
Businesses with turnover above ₹1 crore (₹10 crore where cash receipts and payments are each under 5%) and professionals above ₹50 lakh must file a tax audit report by 30 September 2026. Their income tax return, and that of every company, is due by 31 October 2026.
Who needs a tax audit
A business with turnover above ₹1 crore, or ₹10 crore if cash receipts and cash payments are each 5% or less of the total, needs a tax audit under Section 44AB. A professional with gross receipts above ₹50 lakh needs one too. A business that opted for presumptive tax under Section 44AD and now declares profit below the presumed 8% or 6% rate with income above the basic exemption also falls in. The audit report is Form 3CA-3CD for entities already audited under another law (every company) and Form 3CB-3CD for others, filed by the auditor and accepted by the taxpayer on the portal.
The return that follows
Once the audit report is filed, the return is due by 31 October 2026: ITR-6 for companies, ITR-5 for LLPs and firms, ITR-3 for proprietors and professionals. Companies file by 31 October whether or not a tax audit applies, because their accounts are audited anyway. Taxpayers without an audit had until 31 July. A late return costs ₹5,000 under Section 234F (₹1,000 if income is up to ₹5 lakh), and losses other than house property loss cannot be carried forward. This is the last return under the 1961 Act; tax year 2026-27 will be filed under the Income-tax Act 2025.
Penalty for a missed audit
Failing to obtain or file the audit report by 30 September attracts a penalty under Section 271B of 0.5% of turnover or gross receipts, capped at ₹1.5 lakh, unless there is reasonable cause. The department also flags the return for scrutiny more readily when the report is late. If your books are not closed, this week is for reconciling GST returns with the ledger, since Clause 44 of Form 3CD and the GSTR-9 reconciliation both depend on it. Our Income Tax and Accounting & MIS teams take audit-ready books to the auditor and file the return.
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