LATEST UPDATE AS ON 28TH SEPTEMBER:
The tax audit deadline extension matter before the Rajasthan High Court has moved into a crucial stage, with the Court now seeking clear instructions from the Central Board of Direct Taxes (CBDT) on whether an extension should be granted for Assessment Year (AY) 2026-27.
The matter was taken up by the Rajasthan High Court in connection with the plea seeking an extension of the Tax Audit Report (TAR) due date from 30 September 2026 to 31 October 2026.
CBDT Lead Counsel Unavailable, Final Instructions Sought
During the latest hearing, the CBDT's lead counsel was not present due to a family member being unwell. The Court has now listed the matter again for tomorrow, i.e. 29th September 2026 at 2 PM, for final instructions from the CBDT side.
The Court has specifically asked the CBDT counsel to obtain clear directions on the issue of the proposed tax audit deadline extension.
The proceedings indicate that the Court is looking for clarity on the government's position before considering the request for additional time.
The Tax Audit Report (TAR) deadline for AY 2026-27 has once again become a major concern for chartered accountants and tax professionals, with the matter now before the Rajasthan High Court.
The Court is scheduled to hear a plea seeking additional time for completing and filing tax audit reports. The hearing is expected to bring some clarity to the growing demand for an extension of the existing deadline.
Court Asks About ICAI Representation
During the hearing, the Rajasthan High Court also asked whether the Institute of Chartered Accountants of India (ICAI) had made any representation regarding the tax audit deadline.
The CBDT counsel informed the Court that ICAI had not made any representation, while tax bar associations had submitted representations seeking additional time.
This exchange assumes significance as several professional and tax practitioner bodies have been raising concerns over the time available for completing tax audits and complying with the extensive reporting requirements for AY 2026-27.
Update from Rajasthan High Court!
— CA Himank Singla (@CAHimankSingla) September 28, 2026
Next date: tomorrow for final instructions.
CBDT Lead counsel didnt come today due to the reason that his family member was unwell! pic.twitter.com/6mIkxIQamL
Tax Audit Deadline: What is Being Sought?
The petition seeks an extension of the Tax Audit Report due date from September 30, 2026, to October 31, 2026.
The request is aimed at giving professionals additional time to complete audits, verify financial records and comply with the detailed reporting requirements applicable for the current assessment year.
The proposed extension would also have a corresponding impact on the ITR filing timeline for taxpayers whose accounts are subject to tax audit.
Why Has the Deadline Become a Concern?
Tax professionals have been highlighting the amount of work involved in completing tax audits within the available time.
The audit process requires more than preparing financial statements and uploading the prescribed forms. Professionals also need to examine and reconcile information from multiple sources, including:
- Books of accounts and financial statements
- GST returns and turnover data
- TDS and TCS records
- Form 26AS
- Annual Information Statement (AIS)
- Taxpayer Information Summary (TIS)
- Bank and other financial records
- Various disclosures required under Form 3CD
Any mismatch or missing information can require additional verification before the audit report is finalised.
September 25 Hearing in Focus
The Rajasthan High Court hearing scheduled for September 25, 2026, is therefore being closely followed by the tax and accounting community.
However, it is important to distinguish between a plea seeking an extension and an extension actually being granted.
At present, the existing September 30, 2026 deadline continues to apply, unless the Court passes an order or the Central Board of Direct Taxes (CBDT) issues a notification extending the deadline.
What About the ITR Due Date?
The current statutory timeline provides a later ITR filing deadline for taxpayers whose accounts are required to be audited.
The representation seeking an extension has also called for the ITR deadline to be pushed correspondingly, with November 30, 2026 being sought instead of October 31.
Any change, however, would depend on the outcome of the proceedings and/or a subsequent CBDT notification.
Why Professionals Are Watching the Case
The issue has gained attention across the tax professional community as the September 30 deadline approaches.
For auditors, the final weeks before the deadline typically involve completing pending documentation, resolving client queries, reconciling tax data and ensuring that disclosures in the audit report are properly supported.
An extension, if granted, would provide additional working time. Until then, professionals cannot assume that the deadline has changed.
Taxpayers Should Not Wait for the Outcome
For taxpayers covered by tax audit, the practical approach remains to continue working towards the existing September 30 deadline.
Documents and information required by auditors should be provided without delay. Waiting for the Court's decision before beginning or completing the audit process could create additional pressure if no extension is granted.
What Happens Next?
The September 25 Rajasthan High Court hearing could provide the next significant development in the ongoing tax audit deadline issue.
Until an official order or CBDT notification is issued, the position remains unchanged:
- Tax Audit Report deadline: September 30, 2026
- Extension sought: October 31, 2026
- Rajasthan High Court hearing: September 25, 2026
The tax professional community will be watching the proceedings closely for clarity on whether additional time will be provided for completing the 2026 tax audit cycle.
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