Tax Audit for AY 2026-27: Thresholds, Forms 3CA/3CB-3CD & 30 September Deadline

Tax audit season for FY 2025-26 (AY 2026-27) is approaching, and one point is especially important this year: the existing tax-audit forms under the Income-tax Act, 1961 continue to apply for AY 2026-27. Businesses should therefore not confuse the new Income-tax Act, 2025 framework with the forms applicable to the current assessment year.

Who may be required to get a tax audit?

For business, the general turnover threshold remains ₹1 crore. The higher ₹10 crore threshold can apply where cash receipts and cash payments each do not exceed the prescribed 5% condition. For a profession, the gross-receipts threshold remains ₹50 lakh. Tax audit can also arise in specified presumptive-tax situations, so turnover alone should not be used as the only test.

Which forms apply for AY 2026-27?

For FY 2025-26 / AY 2026-27, the Income Tax Department states that the existing forms continue: Form 3CA for persons whose accounts are audited under another law, Form 3CB for other cases, together with Form 3CD containing the prescribed particulars.

What is the tax-audit deadline?

The tax audit report due date for AY 2026-27 is 30 September 2026. Businesses should avoid treating September as the month to begin the audit. Reconciliations for GST turnover, TDS, related-party transactions, fixed assets, loans, expense disallowances and other Form 3CD disclosures should ideally begin well before the deadline.

A useful distinction for the next tax year

For Tax Year 2026-27 under the Income-tax Act, 2025, the Department has indicated a new Form 26 that consolidates the earlier audit forms. That change is relevant to the next tax year; it does not replace Forms 3CA, 3CB and 3CD for AY 2026-27.

PGT & Associates assists businesses and professionals with tax-audit applicability reviews, Form 3CD preparation, reconciliations and return-filing coordination.