If your accounts are required to be audited, the return you were planning to file by 31 October 2026 now has three more weeks. CBDT Circular No. 07/2026 (F. No. 225/128/2026/ITA-II), dated 28 September 2026, extends the due date for the return of income for Assessment Year 2026-27 from 31.10.2026 to 21.11.2026, and in the same breath fixes the audit report date at 21.10.2026.

This note sets out what the circular says, which Act it sits under, who is covered, and what it leaves untouched.

## Which year and which Act

The circular is about Assessment Year 2026-27, which is Previous Year 2025-26 (the circular itself pairs the two). That year is governed by the Income-tax Act, 1961. The Income-tax Act, 2025 applies from 1 April 2026, so it governs tax year 2026-27 onwards; the 1961 Act continues to govern earlier years. Every section named below is therefore a 1961-Act section unless the text says otherwise.

The circular's own recital of power is worth reading, because it names both Acts. CBDT acts "in exercise of its powers under Section 119 of the Income-tax Act, 1961 (the Act) read with section 536 of the Income-tax Act, 2025". Section 536 of the 2025 Act is titled "Repeal and savings". The recital explains why the Board can move a date at all; it does not amend the sections that set the dates.

## What the circular says

The operative sentence extends "the due date for furnishing Return of Income for the Assessment Year 2026-27 (Previous Year 2025-26) for the persons referred in sl.no.2 of the table below Explanation 2 to sub-section (1) of section 139 of the Act, from 31.10.2026 to 21.11.2026."

The next sentence, which many summaries skip, reads: "Consequently, the specified date for furnishing of report of audit for the Assessment Year 2026-27 (Previous Year 2025-26) shall stand extended to 21.10.2026 in terms of clause (ii) of Explanation to section 44AB of the Income-tax Act,1961."

Three drafting points matter.

- The return extension is class-based, not universal. It applies to the persons at serial number 2 of the table under Explanation 2 to section 139(1) (Income-tax Act, 1961).
- The return date moves from a stated old date (31.10.2026) to a stated new date (21.11.2026).
- The audit report date is stated only as the new date, 21.10.2026. The circular does not state the date it replaces, so treat 21.10.2026 as the operative date and do not rebuild the old one from memory.

## Who is covered: serial number 2

Explanation 2 to section 139(1) (Income-tax Act, 1961, as amended by Act 4 of 2026 with effect from 1 March 2026) sets out a table of persons, conditions and due dates. Serial number 2 reads, in substance:

- a company;
- an assessee (other than a company) whose accounts are required to be audited under the Income-tax Act or under any other law for the time being in force;
- a partner of a firm whose accounts are required to be audited under the Income-tax Act or under any other law, or the spouse of such a partner (if section 5A applies to the spouse);

in each case where the provisions of section 92E do not apply. The ordinary due date in that row is 31st October, which is the date the circular moves to 21.11.2026.

So "audit case" is a fair shorthand, but the row is wider than a tax audit under section 44AB. It reaches audit under any other law, and it reaches the partner of an audited firm. It also names companies. Read the row against your own facts rather than relying on the shorthand.

## What the circular does not move

The text of the circular runs from the subject line to the signature of Dr. Indu Bala, Deputy Secretary, in two operative sentences. Within it:

- Serial number 1 of the same table is a different class: persons to whom section 92E applies, with a due date of 30th November. The circular's extension is for serial number 2 only. It does not mention serial number 1, 3 or 4.
- Serial number 3 (business or profession assessees whose accounts are not required to be audited, due 31st August) and serial number 4 (any other assessee, due 31st July) are not mentioned.
- Nothing in the circular deals with interest, late fee, penalty, belated or revised returns, advance tax, TDS or GST.

If someone tells you everything moved to 21 November, that is not what the document says.

## The two dates in order

| What | Date | Basis |
|---|---|---|
| Report of audit, AY 2026-27 | 21.10.2026 | Clause (ii) of the Explanation to section 44AB, Income-tax Act, 1961, as extended by Circular 07/2026 |
| Return of income, AY 2026-27, serial number 2 of the table under Explanation 2 to section 139(1) | 21.11.2026 (earlier 31.10.2026) | Circular 07/2026 |

The audit report falls a month before the return. The extension is therefore not a reason to leave the audit until November: the report date is earlier than the return date, and the audit has to be closed before the return is finalised.

For readers who work in both Acts: the Income-tax Act, 2025 carries tax audit at section 63, mapped from section 44AB of the 1961 Act. That mapping is relevant to tax year 2026-27 onwards. This circular is about AY 2026-27 under the 1961 Act, and the 44AB reference in it is a 1961-Act reference.

## Subject line and scope

The subject line speaks of "various reports of audit" and Income Tax Returns for AY 2026-27. The body, however, deals with one audit report date, the one under clause (ii) of the Explanation to section 44AB, and one return class. If you are looking for an extension for some other audit report or some other class of assessee, this circular's body does not give it. Confirm against the published circular and any later circular before relying on it for anything beyond the two dates above.

## What to do now

1. **Next step.** Close the audit so that the report is signed by 21 October 2026, and file the return by 21 November 2026 if you fall in serial number 2 of the table (Circular 07/2026, F. No. 225/128/2026/ITA-II).
2. **Check your class.** Compare your facts with serial number 2 of the table under Explanation 2 to section 139(1), Income-tax Act, 1961. If the provisions of section 92E apply to you, you are in a different row and this circular's extension is not the one that applies.
3. **Deadline.** 21.11.2026 for the return; 21.10.2026 for the audit report. Both dates are stated in the circular.
4. **Consequence.** The circular says nothing about consequences of missing either date, so do not assume relief beyond the dates stated; the provisions of the Act apply as they ordinarily would.
5. **Keep the paper.** File the circular number, file number and date (No. 07/2026, F. No. 225/128/2026/ITA-II, 28 September 2026) with the working papers. If a portal message or a notice still shows 31.10.2026, the citation answers it.

Have a CA review your facts before you act or file.

## FAQ

**What is the new due date for the return for AY 2026-27?**
21.11.2026, extended from 31.10.2026, for the persons at serial number 2 of the table under Explanation 2 to section 139(1) of the Income-tax Act, 1961.

**Did the audit report date also move?**
Yes. The circular says the specified date for the report of audit for AY 2026-27 "shall stand extended to 21.10.2026" in terms of clause (ii) of the Explanation to section 44AB of the 1961 Act.

**Does it apply to every taxpayer?**
No. It applies to the persons in serial number 2 of the table: companies, assessees (other than companies) whose accounts are required to be audited under the Act or any other law, and partners of such audited firms or their spouses, where section 92E does not apply.

**Which Act governs this return?**
Assessment Year 2026-27 (Previous Year 2025-26) falls under the Income-tax Act, 1961. The Income-tax Act, 2025 applies from 1 April 2026, to tax year 2026-27 onwards.

**Does the circular change any section of the Act?**
No. It is an extension of dates under section 119 of the 1961 Act, read with section 536 of the 2025 Act.

**What was the old audit report date?**
The circular does not state it. It states only the new date, 21.10.2026.

**Does the circular say anything about penalty or interest?**
No. It contains no provision on penalty, interest or late fees.

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*General information, current as at 2 November 2026. It is not professional advice; take advice on your own facts before filing.*

Canonical: https://www.harunraaj.com/blog/cbdt-circular-07-2026-itr-audit-dates-ay-2026-27