Tax Audit Due Date: 30 September (No Transfer Pricing) and 31 October (With TP)

The tax audit report under s.44AB ITA 1961 — Form 3CA or 3CB with Form 3CD — is due 30 September for a company without transfer pricing, and 31 October where the company has international transactions requiring a s.92E report; the ITR follows on 31 October and 30 November respectively. Filing the audit late attracts a s.271B penalty of 0.5% of turnover (up to ₹1,50,000), and filing the return without the audit report makes the return defective.

What the law actually requires

Section 44AB requires the tax audit to be obtained before the due date for furnishing the return of income under s.139(1). For a company — always an audit case — the operative dates are:

The report is filed electronically on the income-tax portal with the auditor's DSC; the ICAI UDIN on the report confirms the audit was genuinely performed. The sequence matters: the report must precede the return, and both must be in place before the respective deadlines.

Why the report comes first. The assessee must obtain the report before furnishing the return — the return cannot be filed as if the audit will "catch up later". ICAI guidance reinforces the internal order: the auditor should complete the audit, finalise Form 3CD, and then sign Form 3CA/3CB — never sign the covering form with a half-done statement of particulars.

Worked example: Orion Logistics vs Globe Corp

Orion Logistics Pvt Ltd (no transfer pricing), turnover ₹15 crore — above the ₹10 crore threshold, so the tax audit is mandatory. Its FY 2025-26 (AY 2026-27) calendar:

Globe Corp Pvt Ltd (international transactions with a non-resident associate) must additionally furnish Form 3CEB (transfer-pricing report under s.92E) by 31 October; its audit report is due 31 October and its ITR-6 by 30 November. Missing the 30 September date as a non-TP company means the whole sequence slips — the report lands after the deadline, the ITR is defective, and s.271B applies: 0.5% of ₹15 crore = ₹7.5 lakh, capped at ₹1,50,000.

Practical implications

• The 271B penalty is capped, not waived. 0.5% of turnover, subject to a maximum of ₹1,50,000 — but the cap does not make it trivial, and the defective-return consequences are worse than the penalty.
• A late report makes the return defective. Filing ITR-6 without the tax audit report invites a s.139(9) defective-return notice; the department asks you to file again, and the delay compounds with s.234A/234B interest on any tax due.
• The audit report and the ITR must reconcile. The turnover, tax payable and TDS/TCS figures in Form 3CD flow into ITR-6; a mismatch between the two is an automatic scrutiny flag in the portal.
• The auditor's DSC and UDIN are prerequisites. Without a Class 3 DSC and a valid UDIN, the report cannot be e-filed; a sole practitioner over-committed in September is a real reason audits slip.
• Start the audit before the busy season. September is the crush for every CA practice — a company that hands its books to the auditor in mid-September is queuing at the back of a long line. The audit that slips past 30 September is usually the one that started late, not the one that was hard.

Changed FY 2025-26: The 30 September / 31 October dates are unchanged this year. The practical change is portal enforcement: the income-tax portal now rejects an ITR-6 filed without a valid, UDIN-bearing tax audit report on record, and validates the Form 3CD fields against the return before accepting it.

If the audit slips past the deadline

There is no general condonation for a late tax audit. The options are limited and all carry cost:

• File the report as soon as possible. The s.271B penalty (0.5% of turnover, capped at ₹1,50,000) is not reduced by filing late, but the exposure stops accruing once the report is in, and a complete audit trail limits the damage.
• File the ITR with the report attached, even if late. A return filed without the audit report is defective under s.139(9); a return filed late but complete is at least a valid return. Filing the report with the return — rather than leaving it missing — avoids the defective-return cycle.
• Use the updated-return window if the figures change. If the belatedly completed audit changes the income figure, an updated return (s.139(8A)) within the prescribed period can correct the record before assessment.
• Do not read the cap as permission to be late. The ₹1,50,000 cap applies to the s.271B penalty only. Interest under s.234A (late return) and s.234B (advance-tax shortfall) is separate, cumulative and uncapped.

Step-by-step: what to do

• Confirm whether TP applies. If the company has international transactions with an associate (s.92E), the due dates move a month later — confirm with the CA in June, not September.
• Book the auditor early. Agree the fieldwork dates in June; hand over trial balance, bank statements, TDS registers, GST turnover and the loan/share schedules in July.
• Compile the Form 3CD schedules in advance — the 43B add-backs, 40A(3) cash payments, related-party notes, and the GST-ITR turnover reconciliation (Clause 44).
• Track the dates in a compliance calendar: 30 Sep (report, non-TP) → 31 Oct (ITR, non-TP) / 31 Oct (report, TP) → 30 Nov (ITR, TP).
• Verify the report before filing: auditor's DSC, UDIN, Form 3CD complete, figures reconciling with ITR-6.
• File the report first, then the return. Keep the acknowledgement for both.

FAQ

What is the tax audit report due date for a company without transfer pricing?
30 September of the assessment year. The ITR (ITR-6) is due 31 October. With transfer pricing, the report is due 31 October and the ITR 30 November.

What if we file the audit report after 30 September but before the ITR?
It is still late. The report must be obtained before the ITR due date, and the 30 September deadline governs the report itself for non-TP companies. A late report attracts s.271B and can make the return defective.

What is the penalty for a late tax audit?
Under s.271B, 0.5% of turnover or gross receipts, subject to a minimum of ₹1,500 and a maximum of ₹1,50,000.

Which forms make up the tax audit report?
Form 3CA (where accounts are audited under another law, e.g. the Companies Act) or Form 3CB (otherwise), along with Form 3CD (the statement of particulars). The auditor e-files them with a DSC and UDIN.

Does the auditor sign 3CD before 3CA?
Yes — ICAI guidance is to finalise the statement of particulars (Form 3CD) before signing the covering audit report (Form 3CA/3CB).

Can the 271B penalty be waived?
Waiver is not a routine remedy for a late audit — the penalty is levied mechanically once the report is late. There is no practical condonation route for an ordinary capacity or cash-flow shortfall. The lever is to file promptly and keep the audit working papers complete.

Sources

• Income Tax Act 1961, s.44AB, s.92E (transfer-pricing report), s.139(1) (due dates), s.139(9) (defective returns), s.271B (penalty)
• Income Tax Rules 1962 — Rule 6G (Forms 3CA, 3CB, 3CD); Form 3CEB
• ICAI — guidance on tax audit procedure and UDIN

For a compliance audit of your company, visit pvtltd.co

Need help with this?

Our team handles the paperwork. You focus on your business.