Tax Audit 2026: Check your tax report for these errors before September 30, or you might receive a notice..

Tax Audit 2026: The deadline for submitting the tax audit report for Assessment Year 2026-27 is September 30. Those required to have their accounts audited are fully mindful of this deadline. Many taxpayers have already submitted their reports on the portal ahead of schedule. However, is merely filing the report sufficient? The answer is no. Reports filed in haste often contain errors that could later trigger a notice from the Income Tax Department.

Isha ​​Sekhri, Founder of Isha Sekhri & Associates LLP, advises taxpayers to review their filed reports. They may contain fundamental errors that can be rectified before September 30. Since there have been changes to certain reporting rules this year, it is crucial to pay attention to new requirements alongside avoiding past mistakes.

Common Major Errors in Reports
One of the biggest oversights in tax audit reports relates to the UDIN (Unique Document Identification Number). Auditors often upload the report, but taxpayers forget to accept it on the portal. The report is not considered properly submitted until it is accepted. Another common error is failing to correctly specify the nature of the business when entering HSN or SAC codes.

Great caution is also required regarding loans and deposits. There are prescribed limits for loans taken in cash, which must be accurately reflected in the report. Furthermore, reconciling turnover is a critical step; the turnover recorded in your books must perfectly match the figures in Form 26AS, AIS (Annual Information Statement), TIS (Taxpayer Information Summary), and GST returns. Any discrepancy is immediately flagged by the system. Regulations regarding MSME payments have become significantly stricter this year. Major changes have been introduced in Clause 22 under Section 43B(h). If you have failed to make timely payments to small or micro-enterprises, disclosing this information in the report is mandatory. Additionally, details regarding buybacks—often overlooked—must now be provided under Clause 36B.

Can the report be corrected before the deadline?
If you discover an error in your submitted report, the option to rectify it exists. Technically, the law does not provide a specific category for "revision before the due date." However, if an oversight has occurred, you can revise your report before September 30.

Nevertheless, this should not be treated as a routine procedure. You can only correct clerical or calculation errors—such as a typo in a name, address, UDIN, or a numerical figure. Details regarding a bank account or an expense that were inadvertently omitted can also be added. However, you cannot alter your fundamental accounting method; for instance, you cannot suddenly reclassify business income as capital gains. Any changes made must be entirely genuine.

Scope for modifying the report after September 30
There is no need to worry if the September 30 deadline passes. The tax audit report can still be revised after the deadline. For the financial year 2025-26, this can be done up to March 31, 2027.

This situation typically arises when a taxpayer makes certain payments after September 30. For example, suppose you deposit outstanding TDS or PF dues after filing the original return. The deadline for filing the Income Tax Return (ITR) is October 31. In such a scenario, if you have paid significant taxes before October 31, you might need to revise your audit report to claim the relevant exemptions. Additionally, a revision of the report becomes necessary if the government changes a law with retrospective effect or if a new court ruling is issued.

**Impact of Revising the Report on ITR Filing**
The process for revising a tax audit report remains the same regardless of whether it is done before or after September 30. This task must be performed by a Chartered Accountant, who will sign and verify the new report.

Crucially, the ITR you file by October 31 must align perfectly with your latest tax audit report. If you have already filed your ITR and subsequently make changes to the audit report, you will also need to revise your return. Failure to do so could lead the Income Tax Department to deem your return ‘defective’ and issue a notice. Therefore, it is essential to ensure consistency across all your tax documents.

Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.