{"id":35577,"date":"2025-02-08T14:39:51","date_gmt":"2025-02-08T09:09:51","guid":{"rendered":"https:\/\/www.kanakkupillai.com\/learn\/?p=35577"},"modified":"2025-12-30T13:33:59","modified_gmt":"2025-12-30T08:03:59","slug":"tax-audit-applicability-and-due-date","status":"publish","type":"post","link":"https:\/\/www.kanakkupillai.com\/learn\/tax-audit-applicability-and-due-date\/","title":{"rendered":"Tax Audit Applicability and Due Date 2026"},"content":{"rendered":"

Tax\u2002audits<\/strong><\/a> play a vital role in every nation\u2019s taxation system to ensure business and individual compliance with tax laws. The tax audit rules are framed under the Income Tax Act in India and\u2002are meant to detect discrepancies, prevent tax evasion, and maintain the transparency of the financial records of taxpayers. In this blog, we will be looking into what a tax audit is, who requires it, the mechanism, and the important\u2002due dates involved.<\/p>\n

What is a Tax Audit?<\/h2>\n

A tax audit<\/a> is a process in which a qualified professional examines the financial statements<\/a>, books of accounts<\/a>, and tax returns of a taxpayer (individual or business) through a chartered\u2002accountant (CA). An audit is the process of reviewing the income and\u2002expenses of a taxpayer to ensure compliance with tax laws and that the correct amount of tax has been paid.<\/p>\n

In India, certain categories of taxpayers are required to get a tax audit done under section 44AB of the Income Tax\u2002Act. It makes sure that businesses and individuals are keeping up their books in accordance with the tax\u2002legislative acts and reporting their incomes correctly.<\/p>\n

Due Dates for Tax Audit<\/h2>\n

The complexity of the taxpayer determines the date for the tax audits in India, which is mentioned under the\u2002Income Tax Act.<\/p>\n

    \n
  1. General Due Date:<\/strong><\/li>\n<\/ol>\n

    In general, the due date for filing the tax audit report for most businesses and professionals is September 30<\/strong> of the assessment\u2002year. This means the tax audit for the financial year 2025-26 will have to be filed, and the tax audit needs to be completed by September 30, 2026.<\/p>\n

      \n
    1. Extended Due Dates:<\/strong><\/li>\n<\/ol>\n

      In special cases, like any calamity or public emergency, the government may extend the\u2002due date for filing the tax audit<\/a>. In some cases, the due date could be extended for weeks or months.<\/p>\n

        \n
      1. For Companies:<\/strong><\/li>\n<\/ol>\n

        All companies, irrespective of size or turnover, are required to submit their tax audit report by a deadline of 30th September<\/strong> of\u2002the respective assessment year. The audit\u2002for the fiscal year ending 31st March 2026 will be required to be done by 30th September 2026.<\/p>\n

          \n
        1. Revised Returns:<\/strong><\/li>\n<\/ol>\n

          If any discrepancy or error is found after filing the return, a taxpayer can file the amended return within 12 months from the end of the assessment year. Nonetheless, the original due date should still be used to file the tax audit\u2002report.<\/p>\n

          Applicability of Tax Audit<\/h2>\n

          Categories of taxpayers required to undertake a tax audit\u2002are specified under the Income Tax Act. As mentioned above, but not least, one of\u2002the reasons for a tax audit \u0395B serves for a business type as well as the turnover or income level. Let\u2019s break it down further:<\/p>\n

            \n
          1. \n

            Business Entities<\/h3>\n<\/li>\n<\/ol>\n

            Turnover Criteria:<\/strong> According to section 44AB of Income tax, any person\u2002(other than a company), who is carrying on business, should get their accounts audited if their total turnover or gross receipts of the business are more than \u20b91 crore more in a financial year. But, for the assessment year 2020-21 onwards, this limit is being enhanced to \u20b910 crore if cash receipts and payments of the business are to the extent of less than 5% of total receipts\u2002and payments.<\/p>\n

            Professionals (Section 44AA):<\/strong> Professionals: Doctors, lawyers, accountants, etc., whose gross receipts for a financial year exceed \u20b950 lakh, need to undergo a tax audit.<\/p>\n

              \n
            1. \n

              Taxable income of\u2002taxpayers choosing a Presumptive Taxation Scheme<\/h3>\n<\/li>\n<\/ol>\n

              In every presumptive taxation scheme available under the Income Tax Act<\/a> for a taxpayer \u2013 under sections 44AD, 44ADA or 44AE \u2013 the requirement to conduct a tax audit does not apply if his\/ her income is below a specific threshold\u2002limit. For instance, in the case of turnover of business being less\u2002than \u20b92 crore, no tax audit is required under section 44AD.<\/p>\n

                \n
              1. \n

                Companies<\/h3>\n<\/li>\n<\/ol>\n

                All companies are required to get their accounts audited, irrespective of their turnover or gross receipts, thus covering even a private company\u2002or a public company. This is because companies are separate legal entities as per the law, and\u2002taxes are audited to ensure compliance.<\/p>\n

                  \n
                1. \n

                  Limited Liability Partnerships\u2002(LLPs)<\/h3>\n<\/li>\n<\/ol>\n

                  Tax audits are mandatory for LLPs<\/a> having a turnover of more than \u20b940\u2002lakh or a capital contribution of more than \u20b925 lakh.<\/p>\n

                    \n
                  1. \n

                    Others<\/h3>\n<\/li>\n<\/ol>\n

                    Tax Audit is not applicable to any taxpayer viz. Individuals, HUF, or others not covered under the above limit, if the Income Tax Department considers it necessary, then the Individual, HUF or the other entities may be liable for a tax audit.<\/p>\n

                    Process of a Tax Audit<\/h2>\n
                      \n
                    1. Chartered Accountant (CA) Appointment:<\/strong> The audit is carried\u2002out by a qualified CA. They should be\u2002registered under the Institute of Chartered Accountants of India (ICAI).<\/li>\n
                    2. Review of Books of Accounts:<\/strong> The CA will also review the books of accounts maintained by the taxpayer, including income statements, balance sheets, ledgers, etc, to ensure that they are in line with the Income Tax Act.<\/span><\/li>\n
                    3. Filling the Tax Audit Report:<\/strong> CA will fill the Tax Audit Report after the Audit. This involves verification of the taxpayer keeping required records and complying with rules\u2002for taxation, etc.<\/li>\n
                    4. Filing\u2002of Report:<\/strong> The income tax audit report has to be filed with the Income Tax Department along with the taxpayer\u2019s income tax return.<\/li>\n
                    5. Finalisation:<\/strong> Upon submission of the report, the tax authorities can review the report and raise queries if required. If\u2002all is well, the case is finished, and the taxpayer receives a \u201cclean bill of health.\u201d<\/li>\n<\/ol>\n

                      Consequences of Non-compliance<\/h2>\n

                      Taxpayers face\u2002serious consequences as a result of failing to perform a tax audit when necessary:<\/p>\n