Tax audit date moved to 21 October: use the three weeks well

If your firm's accounts need a tax audit, or you are the CA who signs them, late September is one of the busiest times of the year. On 28 September 2026 the Central Board of Direct Taxes (CBDT) gave three more weeks. That time is useful only if it goes into finishing the work, not putting it off.

What changed on 28 September

CBDT Circular No. 07/2026, dated 28 September 2026, moves two dates for assessment year 2026-27, which is the financial year 2025-26:

• Tax audit report: from 30 September to 21 October 2026.
• Income tax return for these cases: from 31 October to 21 November 2026.

The new dates apply to the persons listed at serial number 2 of the table under section 139(1). In simple words, that is companies, businesses and professionals whose accounts must be audited, and partners of such firms. Cases that need a transfer pricing report under section 92E sit in a separate row of the same table and are not part of this change. If you are not sure which row you fall in, ask your CA this week.

Why the extra time can still slip away

An extension feels like relief, so work often pauses for a few days. The rush then simply moves to mid-October, with the return due a month after it. If the audit report is late, the return gets squeezed too. Treat 21 October as the date the CA files, not the date you start sending papers.

A plan for the next three weeks

• Week 1, close the books. Post every pending bill, expense and journal entry for 2025-26. Then agree with your accountant that nobody edits that year once the CA starts.
• Week 1, reconcile the bank. Every line in every bank and card statement should match an entry in the books. List the ones that do not, with a reason.
• Week 2, match GST. Compare sales in your books with the sales in your GST returns, month by month. Compare your purchase register with the input tax credit shown in GSTR-2B. Write one line on every gap, so your CA does not have to chase it.
• Week 2, gather documents. Loan statements, bills for new assets, TDS certificates, closing stock figures, related party details and any tax notices received during the year. Keep them in one folder with clear names.
• Week 3, support the CA. Answer queries the same day. Read the draft report before it is filed.

For CAs with many audit clients

Use the new date to sort clients, not to wait. Clients whose books are closed and reconciled can be finished first. Clients still missing bank statements or GST data need a call now, with a clear list of what is pending. One short checklist sent to every client on the same day saves many follow-up calls later.

How we can help

In many small firms the slowest step before an audit is bank reconciliation. Kanakku reads your bank and card statements, matches each payment to an invoice and drafts the entries for you to check and approve. Everything posts to a double-entry ledger, so the trial balance your CA receives adds up. If you want help getting your books ready before 21 October, talk to us.