vinujaglan.com · Founder's official site 
When audit applies
- Business turnover above ₹1 crore — or above ₹10 crore when cash receipts and cash payments are each within 5%
- Professional gross receipts above ₹50 lakh
- Presumptive cases (44AD/44ADA/44AE) declaring income below the deemed rate while total income exceeds the basic exemption limit
- F&O traders with a loss or low profit may also land here — see our F&O guide
Due dates
Statutorily, the audit report is due one month before the ITR due date — 30 September, with the return by 31 October. For AY 2026-27 the CBDT extended the audit-case ITR date to 21 November 2026. From Tax Year 2026-27 the regular dates return to 30 September (report) and 31 October (ITR).
Late audit report
Budget 2026 replaced the penalty for a late tax-audit report with a fixed fee — but a late audit also delays the return and can cost loss carry-forward. Start the audit by August.
Worked example
Example: A trader's turnover is ₹4.5 crore, with cash sales of only 2% and cash payments of 1%. Audit is not required because the ₹10 crore limit applies.
Common mistakes
- Ignoring the 5% cash test for the higher limit
- Presumptive filers declaring lower profit without audit
- Filing the ITR before the audit report is uploaded and accepted
Frequently asked questions
A practising Chartered Accountant. At VJ & Associates, audits are signed by the Chartered Accountants of our team.
Last reviewed on 11 November 2026 by Vinay Jaglan, VJ & Associates. Law and portal screens change — verify before acting, or ask the office.
