Tax audit vs ITR deadline: The two-stage filing process taxpayers need to know about

For taxpayers subject to a tax audit, 30 September and 31 October are two separate compliance deadlines for AY 2026-27.

The tax audit report must be filed by 30 September, while the deadline for filing the income tax return (ITR) is 31 October. ITR-3 applies to individuals and HUFs with business or professional income, while ITR-4 applies to eligible presumptive taxation taxpayers.

While the two deadlines are closely linked, they serve different purposes. Here’s what taxpayers should do before each deadline.

What is the difference between tax audit and ITR filing?

Siddharth Maurya, Managing Director, Vibhvangal Anukulara, explained, “The September 30 deadline doesn’t refer to the ITR. It means the deadline for the submission of the tax-audit report. The ITR comes later and consists of the financial and audit information.”

The dates are separate for compliance purposes, even though they are often relevant to the same taxpayer. For AY 2026-27, the specified tax-audit reports must be filed in Form 3CA-3CD or Form 3CB-3CD, depending on the nature of the taxpayer, Maurya said.

“However, the ITR filing deadline for taxpayers liable to report under Section 92E (those subject to transfer-pricing reporting) is 30 November, and the audit report deadline for them is 31 October,” he noted.

What should taxpayers do?

Maurya said taxpayers should view the two deadlines as “a single integrated compliance framework rather than two separate deadlines”. He explained the following steps.

• Taxpayers should close and reconcile their accounts and share complete records with their CA. The CA will review the books, check tax disclosures, and prepare the audit report and Form 3CD.
• Once finalised, the tax audit report needs to be uploaded to the income tax portal by 30 September. Taxpayers then prepare and reconcile their ITR with the audited figures and tax records, pay any dues, and file and verify the return.

What must be completed by 30 September?

“The audit report must be submitted by the specified deadline,” Maurya said. Taxpayers should therefore give their CAs sufficient time to review records and avoid a last-minute rush.

Depending on the business, records may include the final trial balance, P&L account, balance sheet, ledgers, bank statements, sales and purchase records, GST returns and reconciliations, TDS/TCS details, fixed assets and depreciation, loans and interest, investments, related-party transactions, expenses with special tax relevance and other details required for claims, he added.

Does a tax audit complete the process?

No.

“Even if we meet the deadline for our tax audit, ITR compliance is not yet complete. The return still has to be filed within the due date applicable to us,” Maurya said.

What should taxpayers check before filing ITR?

Once the audit report is filed, taxpayers should compare the ITR with the final audited financial statements and audit report, Maurya said.

They should verify turnover/revenue, business income, expenses, depreciation, tax deductions, carried-forward losses, TDS/TCS, advance tax and self-assessment tax. Relevant figures should also be reconciled with AIS, Form 26AS and GST data, he added.

What if there is an error in the filed audit report?

If taxpayers identify an error after the audit report has been filed, they should immediately notify their CA. “If there is an error in the underlying audit report, taxpayers should not leave it unreported in the ITR,” Maurya said.

If applicable, the CA should submit a revised report through the prescribed channels, after which the ITR should be finalised with the audit report, he added.

Maurya said the best practice is to include a review period before September 30. Key audit matters should be reviewed by taxpayers and their CAs before reporting so that issues can be identified before the ITR is prepared in October.

Disclaimer: This is only for informational and educational purposes. Please consult a qualified expert for the latest laws and regulations.