Last reviewed: 10 October 2026. The CBDT has given audited assessees three extra weeks. The tax audit report, which was due on 30 September 2026, can now be furnished by 21 October 2026, and the income tax return for these assessees moves from 31 October to 21 November 2026. If your CA has been asking for books for the last two months, this note tells you what actually changed and what has not.
What the circular does
Circular No. 07/2026 dated 28 September 2026 is issued under section 119 of the Income-tax Act, 1961 (read with section 536 of the Income-tax Act, 2025, as reported). It deals with assessees at Sl. No. 2 of the table below Explanation 2 to section 139(1): companies, persons whose accounts must be audited under the Income-tax Act or any other law, and working partners of such firms. The CBDT press release announced the same dates a few days earlier.
| Item | Earlier date | Revised date |
|---|---|---|
| Tax audit report (section 44AB), Sl. No. 2 assessees | 30 September 2026 | 21 October 2026 |
| ITR for AY 2026-27, Sl. No. 2 assessees | 31 October 2026 | 21 November 2026 |
| Section 92E cases (Sl. No. 1): accountant's report | 31 October 2026 | No change reported |
| Section 92E cases (Sl. No. 1): ITR | 30 November 2026 | No change reported |
A note on sourcing: we have read the dates and circular number from the CBDT press release and several independent professional reports. The circular text itself was not retrievable from the department portal when this was written, so please check the PDF on incometaxindia.gov.in before you sign anything that depends on a fine point such as interest.
Who gets the relief and who does not
| Assessee | Covered? |
|---|---|
| Business with turnover above the 44AB limit (Rs 1 crore, or Rs 10 crore where cash receipts and payments are each within 5%) | Yes |
| Professional with gross receipts above Rs 50 lakh | Yes |
| Company (other than a section 92E case) | Yes |
| Firm or LLP with audited accounts, and its working partners | Yes |
| Small trader declaring profit below the presumptive rate under 44AD and therefore audited | Yes |
| Salaried individual, pensioner, non-audit small business | No. Their dates have already passed |
| Assessee with international or specified domestic transactions (section 92E) | No. Own dates apply |
Trusts and institutions need a closer look. A charitable trust whose return falls at Sl. No. 2 gets the ITR date, but the audit reports in Form 10B or 10BB have their own statutory timeline. Some commentators read the relief as covering them too; that is an inference, not circular text. Until it is confirmed, our practical position is to file the trust audit report on the earlier timeline where it is already ready. See our note on Form 10B vs 10BB.
Interest under section 234A and advance tax
Interest under section 234A runs from the due date of the return to the date of filing. When the due date itself is extended by a section 119 circular, the extended date ordinarily becomes the reference point. Reports on Circular 07/2026 note that it is silent on 234A. We therefore suggest a conservative approach for clients with material balance tax: estimate the liability and deposit self-assessment tax on or before 31 October 2026. If the extended date is accepted for 234A, the excess simply becomes a smaller outstanding amount; if not, you have avoided interest on the bulk of the tax. Advance tax instalments already missed continue to attract 234B and 234C in the normal way.
Worked example 1: trader with Rs 2.4 crore turnover
A partnership firm trading in building material reports turnover of Rs 2.4 crore and a net profit of Rs 9 lakh. Its books are closed, but stock valuation and the creditors' confirmation are pending. Under the earlier timeline the report was due on 30 September and the firm was already late. Under the circular, the report is in time if furnished on or before 21 October 2026 and the partners' returns, along with the firm's, can be filed up to 21 November 2026. Had the firm missed even the revised date, the penalty exposure under section 271B is 0.5% of Rs 2.4 crore, which is Rs 1,20,000, subject to the cap of Rs 1,50,000.
Worked example 2: working partner with salary-type remuneration
A working partner receives remuneration and interest from a firm that is subject to audit. The partner is covered because the firm is covered. The partner's ITR needs the firm's audited figures for the remuneration claim to match, so the partner cannot realistically file before the firm's report is uploaded. Plan the partner's return for the week after the firm's report, not for the last day.
A 10-day plan to reach 21 October
- Day 1-2: freeze the trial balance. Pass pending adjustments: depreciation, provisions, accrued interest.
- Day 3-4: reconcile TDS and TCS against Form 26AS and AIS, and match GST turnover per returns against books.
- Day 5: prepare the section 43B(h) schedule of dues to micro and small enterprises and the 40A(3) cash payment review.
- Day 6-7: complete the clause-wise data for Form 3CD. Our 3CD data pack lists the documents your auditor will ask for.
- Day 8: management review, representation letter, and sign-off by the auditor.
- Day 9-10: upload the report, get it accepted by the assessee on the portal, and keep the acknowledgement. Then prepare the return.
The report needs the assessee's acceptance after the auditor uploads it. A report that is uploaded but not accepted may not be treated as furnished, so allow a buffer day.
What this does not change
- Companies Act dates, including AGM, AOC-4 and MGT-7, are not touched by an income tax circular.
- GST annual return and reconciliation dates are separate. Our 30 November ITC deadline note covers that.
- Belated return fees under section 234F still apply if the extended date is missed: Rs 5,000, or Rs 1,000 where total income is up to Rs 5 lakh.
- Whether tax audit applies at all is decided by turnover, receipts and presumptive rules. Use our applicability checker if you are unsure.
Common mistakes this month
- Treating the extra three weeks as permission to start late. Auditors are booked in the same window; a clean data pack still decides the date.
- Filing the ITR before the audit report is accepted. The return should carry the report's acknowledgement number.
- Ignoring section 92E exposure. If a related-party transaction exists, the 21 October and 21 November dates do not apply to you.
- Assuming trusts move automatically. Confirm the audit-report position separately.
Frequently asked questions
What is the new due date for the tax audit report for AY 2026-27?
As reported from CBDT Circular No. 07/2026 dated 28 September 2026, the tax audit report due date for assessees at Sl. No. 2 of the table under Explanation 2 to section 139(1) is extended from 30 September 2026 to 21 October 2026.
What is the new ITR due date for audit cases?
The due date of the income tax return for the same class of assessees moves from 31 October 2026 to 21 November 2026.
Does the extension cover transfer pricing cases?
No. Cases where section 92E applies sit at Sl. No. 1 of the table and are reported as unchanged: report due 31 October 2026 and return due 30 November 2026.
Does interest under section 234A apply if I file by 21 November?
Reports on the circular say it does not address 234A. Interest under 234A is computed from the due date of the return, so the extended date should govern, but the prudent course is to pay estimated self-assessment tax before 31 October and confirm against the circular text.
Is the penalty under section 271B affected?
Section 271B penalty is 0.5% of turnover, receipts or gross receipts, capped at Rs 1,50,000, for failing to get accounts audited or to furnish the report by the specified date. With the specified date moved to 21 October 2026, filing by that date avoids the default.
Are Companies Act dates such as AOC-4 and MGT-7 extended?
No. The circular is under the Income-tax law only. AGM, AOC-4 and MGT-7 timelines under the Companies Act are not changed by it.
I am a salaried person with a small side business. Am I covered?
Only if your accounts are required to be audited. Individuals who are not subject to audit were due on 31 July (or 31 August as extended for the relevant ITR forms) and are not covered by this relief.
We support month-end close, reconciliations and data preparation for businesses with a tax audit due.
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This note is general information based on reported CBDT communications as on 10 October 2026 and is not advice for a specific case. Please verify dates against the circular on incometaxindia.gov.in before relying on them.