The proposed ₹75,000 fixed fee for delay in furnishing tax-audit reports will not apply to Assessment Year (AY) 2026-27. Taxpayers and tax professionals for AY 2026-27 will continue to follow the existing provisions governing tax-audit compliance under the Income-tax Act, 1961.
For AY 2026-27, the consequences of failure to obtain or furnish a tax-audit report within the prescribed timeline will continue to be governed by Section 271B of the Income-tax Act, 1961. Accordingly, the existing penalty framework, rather than the proposed fixed-fee mechanism, will remain applicable for the assessment year.
Tax-audit requirements for eligible taxpayers will continue to be undertaken under Section 44AB. The applicable tax-audit reports will be furnished through Forms 3CA, 3CB and 3CD, depending on the nature and circumstances of the taxpayer.
For ordinary tax-audit cases, the applicable due date for AY 2026-27 is September 30, 2026. Therefore, taxpayers covered by tax-audit provisions should ensure timely completion of the audit and submission of the prescribed report to avoid consequences under the existing law.
The ₹75,000 fixed-fee provision and related new tax-audit framework, including the proposed changes involving Form 26, should not be treated as applicable to AY 2026-27 based on the information provided. CASansaar