Income Tax Audit AY 2026-27
Complete latest amendment guide by CA Certificates covering tax audit thresholds, due dates, Forms 3CA / 3CB / 3CD, ITR changes, penalties, GST reconciliation and upcoming Form 26 under new Income Tax Act 2025.
Overview
Assessment Year 2026-27 is a transition year between the old Income Tax Act, 1961 and the newly introduced Income Tax Act, 2025 effective from 1 April 2026.
Income earned during FY 2025-26 will still be governed by the old Act, therefore tax audit for AY 2026-27 continues through Forms 3CA / 3CB / 3CD.
Tax Audit Applicability & Threshold
Business Limit
Turnover above ₹1 Crore requires tax audit.
Digital Business
₹10 Crore if cash receipts/payments each ≤ 5%.
Profession
Gross receipts above ₹50 Lakh.
Presumptive Cases
Audit may apply when declared income below required limit.
Forms Applicable for AY 2026-27
Form 3CA
For taxpayers already audited under another law.
Form 3CB
For businesses not covered by another audit law.
Form 3CD
Statement of detailed tax particulars.
Future Form 26
Will replace existing forms from Tax Year 2026-27 onward.
Important Due Dates
| Category | Due Date |
|---|---|
| ITR-1 / ITR-2 | 31 July 2026 |
| ITR-3 / ITR-4 (Non Audit) | 31 August 2026 |
| Tax Audit Report | 30 September 2026 |
| ITR Audit Cases | 31 October 2026 |
| Transfer Pricing Cases | 30 November 2026 |
| Belated / Revised Return | 31 December 2026 |
| ITR-U Updated Return | Within 48 Months |
ITR Form Latest Amendments
- ITR-1 now allows LTCG u/s 112A up to ₹1.25 Lakh.
- ITR-2 updated capital gain schedules and VDA reporting.
- ITR-3 includes GST reconciliation and audit cross reference.
- ITR-4 allows LTCG up to ₹1.25 Lakh.
- ITR-U revised penalty and time limits updated.
Assessment Procedure Changes
Reassessment
Only jurisdictional Assessing Officer can issue notices.
Block Assessment
Timeline increased from 12 months to 18 months.
DIN Compliance
Proper document trail remains important.
GST & Digital Compliance
- Turnover should match books and GST returns.
- Mismatch with AIS / 26AS may trigger notice.
- Clause 44 of Form 3CD remains important.
- E-invoice 30 day reporting for eligible taxpayers.
- EVC allowed for Individual / HUF in certain cases.
Latest Update Timeline
Penalty / Fee Risk
271B Default
0.5% of turnover subject to max ₹1.5 Lakh.
Late ITR
₹1,000 to ₹5,000 under Section 234F.
Interest
1% monthly where applicable.
ITR-U
25% to 50% additional tax.
CA Compliance Checklist
- Verify threshold applicability.
- Use correct tax audit forms.
- Check GST reconciliation.
- Verify AIS mismatch.
- Generate UDIN.
- File before due dates.
- Review ITR changes.
- Prepare for new Form 26.
Need Tax Audit Filing Help?
CA Certificates provides complete support for Tax Audit Filing, ITR Filing, GST Reconciliation and Notice Handling.