CBDT Circular 07/2026 (28 September 2026) extended the tax audit report date for FY 2025-26 (AY 2026-27) from 30 September to 21 October 2026, and the return date for audited taxpayers from 31 October to 21 November 2026. If your tax audit report is still not uploaded, it is late, but most of the damage can still be limited.
The penalty: Section 271B
- If a person required to get a tax audit does not get it done or does not furnish the report by the due date, the Assessing Officer can levy a penalty of 0.5% of turnover or gross receipts, up to ₹1,50,000.
- The penalty is not automatic. It is levied by order, after a hearing.
- FY 2025-26 is still governed by the Income-tax Act, 1961, so Section 44AB and Section 271B apply to this year.
The defence: reasonable cause under Section 273B
No penalty can be levied if you show a reasonable cause for the delay. Courts have accepted causes such as the illness of the person responsible, accounts held up by a statutory audit that was itself delayed, portal problems that are documented, and resignation of the auditor close to the due date. Keep evidence of the cause as it happens, such as emails, screenshots of portal errors and medical records. A reason invented later rarely works.
What to do now, in this order
- Get the report uploaded by your auditor as soon as possible, and accept it from your own login on the e-filing portal. The ITR of an audit case cannot be filed until the report is on record.
- File the ITR by 21 November 2026. This matters more than the audit date. A return filed by the due date keeps your right to carry forward business losses and depreciation.
- If 21 November is also missed, a belated return can be filed up to 31 December 2026, with a late fee of ₹5,000 under Section 234F, interest under Section 234A, and the loss of carry-forward for business losses.
- Write down the reason for the delay with supporting documents, in case a penalty notice comes.
Who needs a tax audit for FY 2025-26
- A business with turnover above ₹1 crore, or above ₹10 crore where cash receipts and cash payments are each within 5% of the total.
- A profession with gross receipts above ₹50 lakh.
- A business or profession that opts out of presumptive taxation and declares income below the presumptive rate, where total income exceeds the basic exemption limit.
The full checklist is in our earlier note on the tax audit for FY 2025-26.
Frequently asked questions
What was the tax audit due date for FY 2025-26?
CBDT Circular 07/2026 extended it from 30 September to 21 October 2026. The ITR date for audited taxpayers was extended to 21 November 2026.
What is the penalty for late tax audit report?
Under Section 271B, 0.5% of turnover or gross receipts, up to ₹1,50,000. It is levied by the Assessing Officer and can be avoided if there was a reasonable cause under Section 273B.
Can I still file the tax audit report after 21 October 2026?
Yes. File it as soon as possible. The report must be on record before the ITR of an audit case can be filed.
What is the ITR due date for tax audit cases for AY 2026-27?
21 November 2026 for audited taxpayers who do not need a transfer pricing report. For transfer pricing cases it is 30 November 2026.
What happens if I miss the ITR date too?
You can file a belated return up to 31 December 2026, but you pay a ₹5,000 late fee, interest under Section 234A, and lose the right to carry forward business losses.
How Vitt-Marg helps
We handle ROC, cost audit and income-tax compliance for companies and LLPs across Noida, Greater Noida, Ghaziabad and Delhi NCR. Send us your CIN or LLPIN and we will tell you what is pending, what it will cost, and file it before the next deadline.
General information, current as of 4 November 2026, not advice for a specific case. Due dates and fees change with MCA and CBDT notifications. Check with us before acting on it.