Quick answer
What is a tax audit and when is it due for AY 2026-27?
A tax audit is an audit of accounts under section 44AB of the Income-tax Act 1961 for businesses and professionals above the turnover or receipts limits. For FY 2025-26 (AY 2026-27), CBDT Circular 07/2026 extended the tax audit report due date to 21 October 2026 and the return due date to 21 November 2026.
- Tax audit report due 21 October 2026 (AY 2026-27)
- Income tax return for audit cases due 21 November 2026
- Must be done and signed by a practising chartered accountant
- FY 2025-26 still falls under the 1961 Act
What is a tax audit under section 44AB?
A tax audit is a review of a taxpayer's books of account by a practising chartered accountant, who then reports specified tax particulars in the prescribed forms on the income tax portal. It exists so the Income Tax Department gets a verified picture of income, expenses and compliance from larger businesses and professionals.
The tax auditor checks the books against the law: how income was computed, which expenses were claimed, whether TDS was deducted and deposited, how depreciation was worked out, and many other items. The report is uploaded by the CA and then accepted by the taxpayer on the portal. Only after that can the income tax return for an audit case be filed in the normal way.
A tax audit is different from the company law audit. A private company may need both; a proprietor or partnership firm may need only the tax audit. Our page on statutory audit explains the company side.
Who needs a tax audit in Delhi?
A tax audit applies to businesses whose turnover crosses the section 44AB limit, professionals whose gross receipts cross a separate limit, and some taxpayers under presumptive schemes who declare lower profits than the scheme assumes. The limits depend on your type of income and how much of your business is in cash.
We are not quoting rupee thresholds on this page because they have been changed several times and depend on the mix of cash and digital receipts. Ask your CA to confirm, in writing, whether your FY 2025-26 figures trigger an audit.
| Taxpayer | When to check | Typical Delhi examples |
|---|---|---|
| Traders and manufacturers | Turnover is near or above the business limit in section 44AB | Wholesale traders, Wazirpur and Narela units, e-commerce sellers |
| Professionals | Gross receipts are near or above the professional limit | Doctors, architects, consultants, interior designers |
| Presumptive taxpayers | You declare profit lower than the presumptive rate and income is above the exemption level | Small shops and service providers using presumptive schemes |
| Companies and LLPs | Turnover crosses the limit, in addition to any company or LLP audit | Private limited companies with growing sales |
| Partnership firms | Same business or professional limits as above | Family trading firms in Chandni Chowk or Karol Bagh |
Limits are set in section 44AB of the Income-tax Act 1961 and have been amended over the years. Confirm the limit for your year with a practising CA or on the income tax portal.
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What is the tax audit due date for AY 2026-27?
For FY 2025-26 (AY 2026-27), the tax audit report must be uploaded by 21 October 2026 and the income tax return for audit cases filed by 21 November 2026. Both dates were extended by CBDT Circular 07/2026; transfer pricing cases have a separate later date.
The audit report comes first. Plan for the CA's report to be uploaded and accepted on the portal well before the return date, because the return pulls information from the audited accounts. For all return dates in one place see our guide to ITR due dates for AY 2026-27.
| Filing | Due date | Source |
|---|---|---|
| Tax audit report | 21 October 2026 (extended) | CBDT Circular 07/2026 |
| Income tax return, audit cases | 21 November 2026 (extended) | CBDT Circular 07/2026 |
| Income tax return, transfer pricing cases | 30 November 2026 | Secondary sources; confirm on the portal |
| Belated or revised return | 31 December 2026 | Income tax e-filing FAQ |
Source: CBDT Circular 07/2026 and the income tax e-filing FAQ, checked October 2026. Dates can be extended again; check the portal.
What changes for tax audit under the Income-tax Act 2025?
The Income-tax Act 2025 came into force on 1 April 2026 and renumbers most provisions, so the tax audit rule will sit under a new section number for tax year 2026-27 onwards. Returns and tax audits for FY 2025-26 (AY 2026-27) are still handled under the 1961 Act, where section 44AB applies.
The new Act also replaces the term assessment year with tax year. In practice, this year's tax audit looks familiar, but from next year the forms, section references and portal labels will change. Expect notices, software and checklists to refer to new numbers, and ask your CA to map last year's audit file to the new structure early. Because the Income-tax Rules 2026 and the transition details are still being clarified, we do not quote the new section number here; check the income tax portal.
What documents are needed for a tax audit?
Your tax auditor needs complete books for the year, bank statements, GST and TDS records, and supporting papers for large or unusual items. The more reconciled your records are, the faster the CA can finish and the fewer remarks appear in the report.
| Records | Why the auditor needs them |
|---|---|
| Books of account and trial balance | Base for every figure in the report |
| Bank statements and reconciliations | To check receipts, payments and cash use |
| GST returns and reconciliation with books | Turnover in GST returns is compared with turnover in the books |
| TDS returns, challans and certificates | To report whether tax was deducted and paid on time |
| Purchase and sales registers | To verify turnover, major parties and stock movement |
| Stock records | To report quantities and valuation where required |
| Fixed asset register and bills | To compute and report depreciation |
| Loan confirmations | To report loans taken and repaid |
| Previous year's audit report and return | For opening balances and carried forward items |
If your GST and books do not match, sort it out first through GST return filing reconciliation.
How does the tax audit process work?
The tax audit runs in a fixed order: close the books, give the CA access, answer queries, approve the final accounts, and then accept the uploaded report on the portal before filing the return.
- 1
Close and reconcile the books
Finish accounting for the year, reconcile banks, GST and TDS, and freeze the trial balance.
- 2
Appoint the tax auditor
Choose a practising chartered accountant and add them as your tax auditor on the income tax portal.
- 3
Audit fieldwork
The CA's team checks the books, raises queries and asks for supporting documents.
- 4
Report uploaded by the CA
The CA prepares the report in the prescribed form and uploads it on the portal with a UDIN.
- 5
Taxpayer accepts the report
You log in and accept the uploaded report; an unaccepted report is not treated as filed.
- 6
File the income tax return
File the return for the audit case by 21 November 2026 for AY 2026-27.
What is the penalty for not getting a tax audit done?
Missing a required tax audit, or filing the report late, can lead to a penalty under the Income-tax Act. The law allows the officer to consider a reasonable cause for the delay, but you should not plan around that.
There is also an indirect cost. A return filed without the required audit report may be treated as defective, and late filing brings interest and fees on the return side. Use the 21 October 2026 date as a hard deadline rather than a target. If you receive a notice about a missing report, our income tax notice reply page explains how responses work.
How do you choose a tax auditor?
Pick a practising chartered accountant you have verified on ICAI's CA Connect, who understands your trade, and who can commit to finishing well before 21 October. Ask how the firm handles the peak season, because many CAs sign a large number of reports in the final weeks.
- Confirm membership and certificate of practice on ICAI CA Connect.
- Ask for a written engagement letter with scope and dates.
- Share last year's report so the new auditor sees open issues.
- Agree who prepares the books and who audits; keep them separate where possible.
- Check that the uploaded report carries a valid UDIN.
Our guide on how to choose a chartered accountant covers verification step by step.
Can CA in Delhi do my tax audit?
No. Tax audit is reserved for practising chartered accountants, and ICAI's Code of Ethics 2026 does not permit CA firms to take reserved work through aggregator listings. We therefore give information only, without fees or bookings, for this service.
You can still use this site to prepare. Our list of chartered accountant firms in Delhi is a factual directory, and the listed firms can help with non-reserved work such as bookkeeping, GST and TDS clean-up before your auditor starts. Businesses in Rohini and nearby sectors can read our CA in Rohini page.
The tax audit report must be prepared and signed by a practising chartered accountant you appoint. This page is general information, not tax advice.
Frequently asked questions
What is the last date for tax audit for AY 2026-27?
21 October 2026. CBDT Circular 07/2026 extended the date for furnishing the tax audit report for FY 2025-26. The return for audit cases is due by 21 November 2026. Check the income tax portal in case of a further extension.
Is tax audit applicable to salaried people?
No. A tax audit relates to income from business or profession. A salaried person with salary, interest or capital gains does not need one. If you also run a side business or freelance, check whether that activity crosses the section 44AB limits.
Who can sign a tax audit report?
Only a chartered accountant holding a certificate of practice from ICAI. The CA must be added as your tax auditor on the income tax portal, and the uploaded report carries a UDIN. You can verify the CA's membership on ICAI's CA Connect portal.
Does a private limited company need a tax audit?
Only if its turnover or other conditions bring it under section 44AB. Every company needs a statutory audit under company law, but the tax audit is a separate test under income tax law. Many small companies need only the statutory audit.
What happens if I miss the 21 October 2026 tax audit deadline?
You risk a penalty under the Income-tax Act for failing to get the accounts audited or furnish the report in time, and your return may be treated as defective. Get the report uploaded as soon as possible and keep a record of the reasons for delay.
Is the section number for tax audit changing?
Yes. The Income-tax Act 2025 applies from 1 April 2026 and renumbers provisions, so the tax audit rule will have a new section from tax year 2026-27. For FY 2025-26 returns, section 44AB of the 1961 Act still applies.
Do I need a tax audit if I am under the presumptive scheme?
Usually not, as long as you declare profit at or above the presumptive rate. If you declare lower profit and your total income is above the basic exemption level, a tax audit can apply. Ask your CA to check your case before filing.
How long does a tax audit take?
It depends on the size of the business and the state of the books. With reconciled books, many small business audits finish in days of fieldwork. Delays almost always come from unreconciled bank, GST or TDS records, so close those first.
Does turnover in GST returns need to match the books for a tax audit?
It should, or the difference needs a clear explanation. The tax auditor reviews GST turnover against the books, and mismatches often lead to notices later. Reconcile GSTR-1, GSTR-3B and the sales ledger before the audit begins.
Can CA in Delhi recommend a tax auditor?
We do not route tax audit work, because ICAI does not permit aggregator listings for reserved services. Search ICAI's CA Connect for practising CAs in Delhi, verify them, and agree the engagement directly with the CA you choose.