Tax Audit Checklist for AY 2026-27 and Tax Year 2026-27

📅 May 14, 2026 👤 Team Batuk Consultancy 📂 Income Tax, Income Tax Act

Parameter	AY 2026-27 (FY 2025-26)	Tax Year 2026-27 (from April 2026)
Governing provision	Section 44AB, IT Act 1961	Section 63, IT Act 2025
Audit form	Form 3CA / 3CB + Form 3CD	Form 26 (new — under IT Rules 2026)
Business turnover threshold	₹1 crore (₹10 crore if >95% digital)	Same
Profession gross receipt threshold	₹50 lakh	Same
Audit report due date	30 September 2026	30 September 2027
ITR due date — audit cases	31 October 2026	31 October 2027
Audit fee / penalty for non-compliance	Lower of 0.5% of turnover or ₹1.5 lakh	Same
Nature of Section 271B amount	Fee (changed from penalty per Budget 2026)	Fee
ICAI audit limit	60 audits per CA partner from April 2026	60 per partner
Form 3CD Clause 26 — MSME	Mandatory from AY 2024-25	Form 26 equivalent clause

Category A — Business:

Total turnover/gross receipts exceeds ₹1 crore — audit required
If >95% of receipts AND >95% of payments are through banking channels — threshold is ₹10 crore
Is the 95% digital threshold genuinely met? Verify bank statements, cash book, and UPI records
Opted for presumptive taxation (Section 44AD) in prior 5 years but now declaring income below presumptive rate — audit required
Opted for presumptive taxation (Section 44ADA for professionals) and declaring below 50% — audit required

Category B — Profession:

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