AIMTPA Calls for Rationalisation of Tax Audit and ITR Deadlines for AY 2026-27

Background and Context

The All India MSME and Tax Professionals Association (AIMTPA), through its formal representation bearing reference Ref. AIMTPA/001/26-27 dated 16 September 2026, has addressed the Union Finance Minister seeking a structured rationalisation of the income-tax compliance calendar for Assessment Year 2026-27 and all subsequent years. The representation makes a case for extending two critical deadlines — the Tax Audit Report submission date and the Income Tax Return filing date for audit cases — in order to relieve the mounting workload pressure on Chartered Accountants, tax practitioners, and MSME-linked professional firms.

What AIMTPA Has Welcomed

Before presenting its core demands, AIMTPA acknowledged a positive step already taken by the Government. The extension of the due date for filing income-tax returns in non-audit business and professional cases — moved from 31 July to 31 August — was described by the Association as a welcome and practical reform that reflects a genuine understanding of ground-level compliance realities.

However, AIMTPA pointed out that this extension, while beneficial in isolation, has inadvertently created a new and more pressing problem. With non-audit return filing now running through the entire month of August, the Tax Audit Report deadline of 30 September leaves professionals with effectively only one month to complete the far more demanding and detailed exercise of tax auditing.

The Core Problem: A Compressed Compliance Window

At the heart of AIMTPA's representation lies a structural issue that affects thousands of small and medium-sized professional practices across India. The Association has highlighted that:

  • The same pool of Chartered Accountants, Tax Practitioners, Accountants, and support staff is responsible for both non-audit return filing and tax audit completion.
  • These professionals cannot realistically complete the non-audit filing workload through 31 August and simultaneously prepare for comprehensive tax audits — all within a window that closes on 30 September.
  • Unlike a straightforward return filing exercise, a Tax Audit is an intensive verification and documentation process that demands significantly more time, expertise, and coordination.

The one-month gap between 31 August and 30 September is simply insufficient for professionals simultaneously juggling both non-audit filing and the commencement of audit engagements, particularly in MSME-centric practices.

Scope of Work Involved in a Tax Audit

To appreciate why the current timeline is unworkable, it is important to understand the depth of verification that a Tax Audit entails. According to AIMTPA, a proper Tax Audit Report requires detailed examination and reconciliation of: