Representation Seeking Extension of AY 2026–27 Tax Audit and ITR Due Dates

Background and Context

For Assessment Year 2026–27, a formal representation has been addressed to the Hon’ble Finance Minister requesting relaxation in the statutory timelines for filing Tax Audit Reports and Income Tax Returns in audit cases. The communication, dated 28 September 2026, has been submitted on behalf of the CA Vertical of the Professionals’ Congress under the All India Congress Committee.

The signatories have highlighted that the existing compliance calendar has become highly compressed due to the convergence of multiple statutory obligations. This is especially burdensome for MSME entities and smaller chartered accountancy practices that manage diverse compliance mandates with limited resources.

The representation emphasises that while the Government’s focus on digitisation and timely filing is welcome, the present deadlines are proving challenging in light of the procedural and verification work involved in tax audits, particularly during the transition phase to the Income-tax Act, 2025.

Key Concerns Raised in the Representation

Overlapping Compliance Requirements

The letter points out that the same period is witnessing simultaneous or closely staggered deadlines under different laws and regulations, such as:

  • Tax audits under the Income Tax Act 1961
  • Statutory company audits under the Companies Act 2013
  • Periodic compliances under GST laws
  • TDS-related returns and reconciliations
  • Various allied regulatory submissions

This clustering of obligations is resulting in intense pressure on:

  • Assessees who are required to collate and reconcile financial data across laws
  • Chartered Accountants and other tax professionals who must ensure accuracy and completeness within limited time

Specific Strain on MSMEs and Smaller CA Firms

The representation underscores that:

  • MSMEs generally have smaller finance and accounts teams and slower turnaround times for finalisation of books.
  • Smaller CA firms may not have large staff strength, yet they often service a broad base of assessees that require tax audits, GST reconciliations, and TDS validations simultaneously.
  • When multiple large and small assignments converge around the same set of deadlines, maintaining quality control in audit and reporting becomes more difficult.

As a result, these segments are disproportionately affected by rigid statutory timelines compared to larger entities with more robust internal capacities.

Nature of Work Involved in Tax Audits

The signatories have drawn attention to the fact that tax audits under the Income Tax Act 1961 are not mere form-fill exercises. They involve:

  1. Detailed scrutiny of financial statements

    • Verification of ledgers, trial balance, and supporting documentation
    • Identification of disallowances, inadmissible expenses, and compliance-related adjustments

  2. GST Reconciliation

    • Matching turnover as per financial statements with figures reported in GST returns
    • Aligning input tax credit as per books with that reflected in GST records
    • Addressing differences arising from timing issues, amendments, and corrections

  3. TDS Reconciliation

    • Checking whether TDS has been correctly deducted and deposited
    • Reconciling TDS as per books with Form 26AS and related statements
    • Ensuring correct mapping of PANs, sections, and rates