CBDT extends deadlines for tax audit reports and ITR filing

Taxpayers and chartered accountants have got a major relief. The Central Board of Direct Taxes (CBDT) has extended the deadline for filing income tax audit reports and Income Tax Returns (ITR) for assessment year 2026-27. The decision was announced by the CBDT through a social media post.

The extension applies to all taxpayers covered under clause (2) of section 139(1) of the Income Tax Act, 1961, that is, those required to get their accounts audited.

For taxpayers subject to tax audit, the last date for filing ITR was earlier October 31, 2026. This has now been extended to November 21, 2026, giving such taxpayers 21 extra days.

The deadline for submitting the tax audit report has also been extended along with the ITR deadline. The last date for the audit report was earlier September 30, 2026, which has now been extended to October 21, 2026.

This relief mainly benefits companies and other taxpayers whose accounts require audit under the Income Tax Act or other applicable laws. In addition, the ITR filing deadline of November 21, 2026, also applies to non-company assessees subject to tax audit, working partners of firms being audited, and trusts required to have their accounts audited under law.

However, cases involving transfer pricing will not get this relief. In such cases, the last date for filing ITR remains November 30, 2026. The deadline for filing Form 3CEB also remains unchanged at October 31, 2026.

In many places, tax audit work was still underway, with several companies' accounts not fully ready and information still to be provided to auditors. The extra time will be useful in such cases. For non-transfer pricing cases, the tax audit deadline has been extended from September 30, 2026 to October 21, 2026, and the ITR deadline from October 31, 2026 to November 21, 2026.

Even so, the advice remains not to use the extra time to delay work until the last days. If the tax liability is already determined, it is better to pay the tax early, since delays carry the risk of interest being charged.

The extension is also a relief for chartered accountants across the country, as the ITR e-filing portal and the ICAI UDIN portal had been facing repeated technical issues in recent days.

Income tax audit is not mandatory for every taxpayer. Taxpayers for whom tax audit is applicable under law must get the audit done by a chartered accountant, who then prepares the tax audit report and uploads it on the e-filing portal.

The 21-day extension is especially significant for large and complex businesses that require extensive audit and data reconciliation. Taxpayers who file their ITR by November 21, 2026 will be treated as having filed on time, preserving their right to carry forward business and capital losses and their eligibility for certain deductions that depend on timely filing of ITR.