Tax audit deadline extended: Key checks taxpayers should make before filing income tax return

The Central Board of Direct Taxes (CBDT) has extended the due date of both the tax audit and ITR filing for Assessment Year (AY) 2026-27.

CBDT has, vide Circular No. 07/2026 dated September 28, 2026, extended the return filing due date for the relevant cases from October 31, 2026, to November 21, 2026. Consequently, the due date for furnishing the tax audit report in such cases has also been extended from September 30, 2026, to October 21, 2026.

After the deadline extensions, tax filers under these categories have many days to file their return. However, they should be careful while filing their return as a wrong return may invite an income tax notice. Here we take you through the key checks tax filers should make before filing ITR to avoid errors and notices.

What are the key checks taxpayers should make before filing their ITR to avoid errors or notices?

Richa Sawhney, Partner & National Tax Office Leader, Grant Thornton Bharat, said, "With tax authorities increasingly leveraging data analytics and information from multiple sources, companies should focus not only on timely filing but also on ensuring that the information reported in the return is duly reconciled with records available on the income-tax portal, financial statements and other relevant regulatory filings.”

Sawhney said that companies should also ensure that any additional compliance requirements, certifications, audit reports or prescribed forms required to support specific claims, deductions or tax positions are duly complied with, within the prescribed timelines.

“This can help minimise mismatches and reporting gaps, reduce the risk of scrutiny, and place taxpayers in a stronger position to substantiate their tax positions and respond to queries during assessments."

Check TDS/TCS, advance tax and self-assessment tax credits

Businesses should make sure that they are using the correct ITR form before filing the return. Companies that do not claim exemption under Section 11 are subject to Form ITR-6.

Sawhney says, “Companies should also reconcile income and tax details reported in the return with their books of account, audited financial statements, Form 26AS, Annual Information Statement (AIS) and other relevant records. In particular, TDS/TCS, advance tax and self-assessment tax credits should be checked for consistency, and any mismatch should ideally be reconciled before filing the return.”

Report different types of incomes correctly

Adding further, Sawhney explains companies should ensure that all taxable income is appropriately reported, including business income, capital gains, income from house property, income from other sources and foreign-source income, wherever applicable. Deductions and exemptions should be claimed only where the prescribed conditions are fulfilled and the necessary supporting records are available.

Corporate tax regime, foreign income and tax audit requirements

The applicable corporate tax regime should also be checked carefully. Where a domestic company seeks to exercise the concessional tax option under Section 115BAA, the prescribed option is exercised through Form 10-IC within the stipulated timeline. Companies already covered by the concessional regime under Section 115BAB should also ensure continued compliance with the conditions prescribed under that section, states Sawhney.

Special attention for companies having foreign assets

Also, special attention is required where a resident company has foreign assets or foreign source income, or is claiming foreign tax credit. Companies should also check whether any tax audit, transfer-pricing report, accountant’s report or other prescribed form is applicable based on their transactions or deductions claimed. For instance, a resident company claiming foreign tax credit is required to furnish Form 67 along with the prescribed supporting evidence.

Who is required to file Form 3CD, and when does it apply?

Form 3CD is the prescribed statement of particulars for a company that is required to undergo tax audit under Section 44AB of the Income-tax Act, 1961.

When does a company need to undergo a tax audit?

Broadly, a company carrying on business is required to undergo a tax audit where its total sales, turnover or gross receipts exceed Rs 1 crore. However, the threshold increases to Rs 10 crore where cash receipts and cash payments do not exceed 5% of the respective aggregate receipts and payments.

For companies liable to tax audit under Section 44AB, the report is furnished in Form 3CA along with the statement of particulars in Form 3CD, since their accounts are already subject to statutory audit under the Companies Act, 2013. For AY 2026-27, Form 3CD continues to apply under the Income-tax Act, 1961 framework. Under section 44AB, the tax audit report is required to be furnished by the “specified date”, which is one month before the applicable due date for filing the return under section 139(1).

Are there any other important forms, reports or disclosures that taxpayers should be aware of based on their income or nature of business/profession?

Yes. The compliance requirement depends upon the company’s transactions, tax regime and deductions claimed. For example, Form 3CEB is required under Section 92E where a company has entered into an international transaction or a specified domestic transaction.

For domestic companies opting for the concessional corporate tax regime under Section 115BAA, Form 10-IC is required to be furnished within the prescribed timeline. A resident company claiming foreign tax credit is required to furnish Form 67 in accordance with Rule 128, together with the prescribed supporting evidence. Companies to which the Minimum Alternate Tax provisions of section 115JB apply are required to obtain the prescribed accountant’s report in Form 29B.

Certain deductions and transactions also carry separate reporting requirements. For example, Form 10DA is prescribed where deduction under Section 80JJAA is claimed, while Form 3CEA is required in case of a slump sale under Section 50B.

Apart from separate forms, companies should not overlook the disclosures required within the ITR itself. Depending on the facts, these may include disclosures relating to foreign assets, foreign-source income and foreign tax relief, capital gains and other specified transactions.