Tax Audit Deadline Is 30 September 2026: Complete These 12 Checks Before Filing Form 3CD

Tax Audit Deadline Is 30 September 2026

Complete these 12 important checks before approving Form 3CD.

Only a few days remain for the tax-audit deadline. Rushing the report without complete records can create differences between the books, Form 3CD and the income-tax return.

Current deadline: 30 September 2026 Applicable to tax-audit reports for AY 2026–27. As checked on 27 September 2026, no later official extension was found.

Remember: Uploading by the Chartered Accountant is not the final step. The taxpayer should log in, review and accept the tax-audit report on the income-tax portal.

Which tax-audit form applies?

Form	When it generally applies
Form 3CA with Form 3CD	When the accounts are already required to be audited under another law, such as the Companies Act.
Form 3CB with Form 3CD	When the accounts are not required to be audited under another law but tax audit is applicable.

12 checks before approving Form 3CD

1

Finalise the books of account

Ensure that all sales, purchases, expenses, receipts, payments and journal entries are recorded. Avoid changing the books after giving the final data to the auditor without informing the auditor.

2

Confirm turnover or gross receipts

Reconcile the turnover appearing in the profit and loss account with GST returns, invoices, bank credits and other applicable records.

3

Complete the GST reconciliation

Compare the books with GSTR-1, GSTR-3B and annual GST workings. Explain differences caused by credit notes, advances, amendments, exempt supplies or timing differences.

4

Verify TDS compliance

Review expenses such as salary, interest, rent, professional fees, contracts and commission. Check whether applicable TDS was deducted, deposited and reported correctly.

5

Review outstanding expenses

Examine unpaid statutory liabilities and year-end provisions. Confirm whether any amount requires adjustment or separate reporting under the tax law.

6

Check MSME creditors

Identify suppliers registered as micro or small enterprises. Keep their declarations, ageing details and payment dates ready for examining the applicable deduction and disclosure requirements.

7

Verify loans and deposits

Prepare party-wise details of loans accepted or repaid. Include opening balance, additions, repayments, closing balance, mode of payment and lender details.

8

Check cash transactions

Review large cash receipts, cash payments, expense vouchers and cash-book balances. Confirm that supporting evidence is available and applicable restrictions have been examined.

9

Update the fixed-asset register

Provide invoices and put-to-use dates for new assets. Record assets sold or discarded and reconcile depreciation with the books and tax workings.

10

Confirm related-party transactions

Prepare the names, relationships, nature of transactions and amounts involving specified related persons. Keep agreements and supporting documents ready.

11

Match AIS, TIS and Form 26AS

Review reported income, TDS, high-value transactions and tax payments. Investigate differences before the income-tax return is prepared.

12

Accept the uploaded report

After the auditor submits the report, the taxpayer should review it on the portal and complete the acceptance process before the deadline.

Documents to keep ready

Area	Important records
Accounts	Trial balance, ledgers, financial statements and schedules
Banking	Statements, reconciliations, loan statements and interest certificates
GST	GSTR-1, GSTR-3B and turnover reconciliation
TDS	Returns, challans, Form 26AS and expense-wise reconciliation
MSME	Supplier declarations, registration details, ageing and payment dates
Fixed assets	Purchase invoices, sale documents and depreciation workings

What happens if tax audit is delayed?

Where Section 271B applies, the Assessing Officer may impose a penalty equal to 0.5% of turnover or gross receipts, or ₹1,50,000, whichever is lower.

However, the law provides relief where the taxpayer proves a reasonable cause. This should not be treated as an automatic waiver.

Do not wait for the final day

The auditor needs sufficient time to review reconciliations, supporting records and explanations. The taxpayer also needs time to accept the uploaded report.

Submitting incomplete information on the final day may result in avoidable qualifications, incorrect reporting or last-minute portal difficulties.

Is your tax audit still pending?

Contact our office for professional assistance with tax-audit applicability, books review, GST and TDS reconciliation, Form 3CD preparation and income-tax compliance.

Phone: 7760252581

Call 7760252581 WhatsApp Us

Official references checked on 27 September 2026:
Income Tax Department – Interplay and Transition FAQs
Form 3CA-3CD User Manual
Section 271B – Failure to get accounts audited

Disclaimer: This article provides general information. Tax-audit applicability and reporting depend on the taxpayer’s legal status, business, profession, turnover, cash transactions, presumptive-tax history and other facts. Obtain professional advice for your particular case.

DPIIT Recognition Means Zero Tax for 3 Years? The Startup Myth Founders Must Avoid

DPIIT Recognition Means Zero Tax for 3 Years?

The important difference every Indian startup founder should understand.

Many founders receive their DPIIT Startup Recognition Certificate and assume that their startup’s profits are automatically tax-free.

This is not correct. DPIIT recognition and the startup profit deduction are separate benefits with different eligibility conditions and approval requirements.

Common assumption: “My company is recognised by DPIIT, so I do not have to pay income tax for three years.”

Correct position: DPIIT recognition is the first step. The startup must separately satisfy the income-tax conditions and obtain the prescribed eligibility certification before claiming the profit deduction.

What is DPIIT Startup Recognition?

DPIIT recognition identifies an eligible entity as a startup under the Startup India framework. Recognition may provide access to specified regulatory relaxations, schemes and other benefits, subject to their individual conditions.

General DPIIT recognition

• The entity can be a private limited company, LLP, registered partnership firm or eligible cooperative society.
• It should generally be within 10 years from incorporation or registration.
• Turnover should be below ₹200 crore in every previous financial year.
• The business should work towards innovation, development or improvement, or have a scalable model with potential for employment or wealth creation.
• It should not be created merely by splitting or reconstructing an existing business.

Separate higher limits may apply to a startup qualifying under the notified DeepTech framework. Such status should not be assumed merely because the business uses technology.

What is the startup tax deduction?

For income earned under the Income-tax Act, 2025, the startup profit deduction is contained in Section 140. It corresponds to the benefit popularly known under Section 80-IAC of the earlier Income-tax Act.

Who can qualify?

An eligible private limited company or LLP satisfying the prescribed startup, business and certification conditions.

How much is deductible?

Up to 100% of eligible business profits for three consecutive assessment years, subject to the law.

Which years?

The startup may select three consecutive assessment years from the permitted ten-year period beginning with incorporation.

Turnover condition

Turnover must not exceed ₹100 crore in the previous year for which the deduction is claimed.

Recognition and tax deduction are not the same

Point	DPIIT recognition	Startup profit deduction
Main purpose	Recognition under Startup India	Deduction of eligible business profits
Eligible structure	Company, LLP, registered partnership or eligible cooperative society	Eligible company or LLP
General turnover limit	Below ₹200 crore	Not exceeding ₹100 crore in the claim year
Approval	DPIIT recognition	Separate prescribed eligibility certification
Automatic tax holiday?	No	Available only after all conditions are satisfied

Simple example

ABC Innovations Private Limited receives DPIIT recognition. Its turnover and age are within the recognition limits.

This certificate alone does not allow ABC Innovations to deduct its profits. The company must separately check the startup tax-deduction conditions, obtain the prescribed certification and correctly claim the benefit in its income-tax return.

Why choosing the correct three years matters

The deduction is available for three consecutive assessment years. Therefore, using it during a year with very low or no profit may reduce its practical benefit.

Before selecting the first claim year, founders should prepare realistic profit projections and consider carried-forward losses, tax rates, other deductions and future growth.

Important: Do not claim the deduction only because your startup has a DPIIT certificate. An incorrect claim may lead to adjustment, tax demand, interest or further verification.

Startup tax-planning checklist

• Confirm the legal structure and date of incorporation.
• Verify DPIIT recognition details and continued eligibility.
• Check the applicable turnover limit separately for recognition and tax deduction.
• Confirm that the business activity meets the eligible-business conditions.
• Review whether the entity was formed by splitting or reconstructing an existing business.
• Prepare the financial statements and profit projections.
• Apply for the prescribed tax-eligibility certification.
• Select the three consecutive years only after proper tax planning.
• Maintain supporting documents and file the required return and reports within the applicable timelines.

How professional guidance can help

A Chartered Accountant can assist in reviewing the entity structure, turnover, financial statements, profit projections, eligibility conditions and tax-compliance requirements.

Early review is useful because recognition, tax eligibility and the best year for starting the deduction may require separate decisions.

Planning DPIIT recognition or startup tax benefits?

Contact our office for professional assistance with startup incorporation, DPIIT recognition, tax eligibility review, financial projections and compliance planning.

Phone: 7760252581

Call 7760252581 WhatsApp Us

Official references checked on 26 September 2026:
Startup India – DPIIT Recognition and Tax Exemption
Income Tax Department – Section 140
Income Tax Department – Deductions

Disclaimer: This article provides general information and is not a guarantee of recognition, certification or tax benefit. Eligibility depends on the applicable law, notifications, facts and documents of each startup. Obtain professional advice before making a claim.

Booking an Under-Construction Flat in Bengaluru? Check These 10 RERA Details Before Paying

A beautiful model flat and an attractive discount can create pressure to book immediately. But buying a home is a major financial decision. Before paying even the booking amount, check the project’s RERA registration, approvals, agreement terms, possession date and total cost. These simple checks may protect you from unexpected charges, documentation problems and future disputes.

Booking an Under-Construction Flat in Bengaluru?

Check these 10 important RERA details before paying the booking amount.

A beautiful model flat and an attractive discount can create pressure to book immediately. But buying a home is a major financial decision. A few checks before payment may protect you from unexpected charges, documentation problems and future disputes.

Important: RERA registration is an essential starting check. However, registration alone should not be treated as a guarantee of clear title, timely possession or suitability of the property.

10 checks to complete before booking

1Find the project on Karnataka RERA

Search the project on the official Karnataka RERA portal. Match the project name, promoter, location and registration number with the brochure and booking documents.

2Check the correct phase and tower

Large projects may have separate RERA registrations for different phases. Confirm that your exact tower, block or phase is covered by the registration shown to you.

3Review the declared completion date

Check the completion date displayed on the RERA portal and compare it with the possession date promised in the agreement. Do not depend only on a salesperson’s verbal assurance.

4Compare sanctioned plans

Verify the approved layout, apartment plan, carpet area, amenities and specifications. Ask for clarification if the brochure differs from the documents disclosed on the portal.

5Examine approvals and title documents

Review the disclosed approvals, land title documents, encumbrance information and any legal cases relating to the project. Obtain professional assistance where the documents are difficult to understand.

6Do not pay more than 10% without an agreement

Section 13 of the RERA Act says a promoter cannot accept more than 10% of the apartment, plot or building cost as advance or application fee without first entering into a written and registered agreement for sale.

7Understand the complete price

Ask for a written cost sheet showing the basic price, parking, amenities, maintenance deposit, statutory charges, taxes and other additions. Understand which amounts are refundable and non-refundable.

8Read the delay and cancellation clauses

Check the possession date, grace period, payment schedule, interest clauses and cancellation conditions. Confirm whether the agreement matches the promises made during the sale discussion.

9Review progress updates and complaints

Promoters are required to provide prescribed project information and updates. Review construction progress, disclosed bookings, approvals, complaints and available Authority orders before deciding.

10Keep every record

Save the brochure, cost sheet, emails, WhatsApp messages, receipts and payment advice. Pay only through traceable banking channels to the account formally communicated for the project.

A simple example

Suppose a flat costs ₹80 lakh and the promoter asks for ₹12 lakh before signing the agreement for sale. This is 15% of the cost. Since it is more than 10%, the buyer should pause and seek clarification before making the payment.

Documents worth checking

Document or detail	What to verify
RERA registration	Project, phase, promoter and validity details
Agreement for sale	Carpet area, price, possession and cancellation terms
Cost sheet	Total financial commitment and additional charges
Sanctioned plan	Apartment layout, common areas and approved specifications
Title and encumbrance records	Ownership, charges, mortgages and disclosed disputes
Payment schedule	Whether instalments are clear and properly documented

Why professional review can help

Property documents contain legal, financial and tax conditions that may not be clear to every buyer. A structured review can help you understand the total cost, payment terms, tax impact and documentation gaps before you commit your savings.

Professional review cannot remove every commercial risk, but it can help you make a more informed decision and identify questions that should be answered before payment.

Planning to book a property?

For professional assistance with cost-sheet review, tax implications and document-based financial checks, contact our office before making a major payment.

Phone: 7760252581

Call 7760252581 WhatsApp Us

Official references:
Real Estate (Regulation and Development) Act, 2016
Karnataka RERA official portal
Karnataka RERA registered-project search

Disclaimer: This article provides general information and is not a legal opinion, title certificate or investment recommendation. Property facts and documents differ from project to project. Obtain appropriate professional advice before booking or making payment.

Before You Sign the Balance Sheet: 10 Audit Red Flags Business Owners Must Check

Balance Sheet audit checklist, audit red flags, financial statement review, statutory audit checklist, accounting errors, business audit

AUDIT READINESS CHECK

Before You Sign the Balance Sheet

Check these 10 audit red flags before approving your financial statements.

Eye-opener: A profitable Balance Sheet can still contain serious accounting errors. Profit alone does not confirm that GST, TDS, loans, expenses, inventory and outstanding balances are correct.

Financial statements are important documents. Banks, tax authorities, investors, vendors and management may rely on them while making decisions.

For a company, the financial statements must present a true and fair view and comply with the applicable accounting standards and legal requirements. The Board approves the financial statements, while the auditor examines the records and reports in accordance with the applicable law and auditing standards.

Therefore, the business owner and management should understand the major balances before signing the accounts.

1. Bank balance does not match the bank statement

Obtain the Bank Reconciliation Statement for every bank account. Check old unpresented cheques, uncleared deposits, bank charges, interest, direct debits and unknown transactions.

A difference between the books and bank statement may indicate an unrecorded transaction, duplication or incorrect accounting entry.

2. Cash balance is unusually high or negative

A negative cash balance is normally not practical. A very high year-end cash balance should also be supported by the actual cash available and proper records.

Red flag:

The books show cash of ₹8 lakh, but the physical cash available is only ₹50,000 and there is no explanation for the difference.

3. GST turnover does not match the books

Reconcile the turnover reported in the financial statements with GSTR-1 and GSTR-3B. Review debit notes, credit notes, advances, exports, exempt supplies and amendments.

Also reconcile the input tax credit recorded in the books with GSTR-2B and identify blocked, ineligible or unreconciled credits.

4. TDS has not been deducted or deposited

Review professional fees, contractor payments, rent, commission, interest and other expenses that may attract TDS.

Verify whether TDS was deducted at the correct time and rate, deposited and reported in the relevant return. Non-compliance may result in interest, late fees, penalties and possible disallowance under the Income-tax Act.

5. Old receivables are still shown as recoverable

Review customer-wise ageing and identify balances that have remained unpaid for a long period. Obtain confirmations for material balances and check subsequent collections.

Questions to ask:

• Is the customer still operating?

• Is any invoice disputed?

• Was money collected after the year-end?

• Is a provision or write-off required?

6. Vendor balances are not confirmed

Match major creditor balances with vendor statements. Check unrecorded purchase invoices, duplicate entries, old advances, debit balances and payments made after the year-end.

Differences should be reconciled before the financial statements are approved.

7. Inventory is accepted without physical verification

The closing stock should be supported by quantity records, physical verification and valuation workings.

Quantity

Match physical stock with accounting records.

Condition

Identify damaged, expired or slow-moving stock.

Valuation

Apply the relevant accounting policy consistently.

8. Loans and advances do not have supporting documents

Obtain loan agreements, sanction letters, repayment schedules and balance confirmations. Check the interest rate, security, repayment terms and classification as current or non-current.

For companies, loans to or from directors, related parties and other entities should also be reviewed for disclosure and compliance under the applicable provisions.

9. Personal or capital expenditure is recorded as a business expense

Review large and unusual expenses. Personal payments should not be claimed as business expenses. Assets providing benefits over more than one period may require capitalisation instead of being fully charged as an expense.

Common examples:

Vehicle purchases, major machinery repairs, office renovation, computers, furniture, personal travel and payments without proper invoices.

10. Related-party transactions are not separately reviewed

Identify transactions with directors, partners, relatives, group entities and businesses under common control.

Check whether the transaction is properly authorised, supported, accounted for and disclosed under the applicable legal and accounting requirements.

Final checklist before signing

✓ All bank accounts are reconciled

✓ Cash balance is physically verified

✓ GST turnover and input tax credit are reconciled

✓ TDS compliance has been reviewed

✓ Receivables and payables are confirmed

✓ Inventory quantity and valuation are checked

✓ Loans are supported by documents

✓ Fixed assets and depreciation are reviewed

✓ Related-party transactions are identified

✓ Major audit observations are discussed and resolved

Signing without understanding is risky

Ask for explanations of major balances, changes from the previous year and unresolved audit observations. Management should approve the accounts only after understanding the financial position presented.

Need Professional Assistance With Your Accounts or Audit?

We can review your books, identify important reconciliation gaps and assist in completing the financial statements and audit requirements.

Call or WhatsApp: 7760252581

Call Now WhatsApp Us

Disclaimer: This article provides general information. The applicable accounting, audit, tax and company-law requirements depend on the constitution, size, transactions and facts of each business.

Balance Sheet audit checklist, audit red flags, financial statement review, statutory audit checklist, accounting errors, business audit Bangalore

Company AGM Completed? File AOC-4 and MGT-7 Before These Deadlines

COMPANY COMPLIANCE ALERT

AGM Completed? Your ROC Compliance Is Not Over Yet

Understand the AOC-4 and MGT-7 filing timelines before additional fees start increasing.

Important: Holding the Annual General Meeting does not complete the annual compliance. The financial statements and annual return must also be filed separately with the Registrar of Companies.

Many private limited companies complete their AGM and assume that the yearly compliance is finished. However, two important ROC filings generally remain:

AOC-4

Used for filing the company’s financial statements and connected documents.

MGT-7 or MGT-7A

Used for filing the company’s annual return containing corporate and management details.

Key filing timelines

Compliance	Normal timeline	Purpose
AOC-4	Within 30 days of the AGM	Financial statements
MGT-7	Within 60 days of the AGM	Annual return for applicable companies
MGT-7A	Within 60 days of the AGM	Simplified annual return for an OPC or small company

Remember:

The filing dates are calculated from the actual or applicable AGM date. Therefore, a company that held its AGM before 30 September may have an earlier AOC-4 and annual-return deadline.

Example for easy understanding

Assume a company holds its AGM on 30 September 2026.

FINANCIAL STATEMENTS

AOC-4

Normally due within 30 days of the AGM.

ANNUAL RETURN

MGT-7 or MGT-7A

Normally due within 60 days of the AGM.

The company should not wait until the last date. Financial statements, audit documents and corporate information should be checked well in advance.

What is filed with AOC-4?

✓ Balance Sheet and Statement of Profit and Loss

✓ Notes forming part of the financial statements

✓ Cash Flow Statement, where applicable

✓ Auditor’s Report

✓ Board’s Report and connected annexures

✓ Other applicable financial-statement attachments

What information is required for the annual return?

Registered office

Company address and contact information.

Business activities

Main business and principal activity details.

Shareholding

Members, shares and changes during the year.

Directors and KMP

Appointment and cessation information.

Meetings

Board, members and committee meeting details.

Compliance details

Required declarations and other statutory information.

MGT-7 or MGT-7A: Which form applies?

MGT-7A is the abridged annual-return form prescribed for a One Person Company and a small company. Other companies generally file MGT-7, subject to the applicable rules and company classification.

The company’s eligibility should be checked for the relevant financial year instead of selecting the form only on the basis of its name or earlier filing.

Common reasons for filing delays

• Financial statements are not finalised on time

• Auditor’s Report or Board’s Report is incomplete

• Director or shareholding details do not match MCA records

• Digital Signature Certificate has expired

• AGM date is incorrectly recorded

• Filing is kept pending until the final few days

What happens if the forms are filed late?

• Additional filing fees may continue to increase with the delay.
• The company and responsible officers may face statutory consequences under the Companies Act.
• The company’s compliance status and due-diligence report may be affected.
• Banks, investors and prospective business partners may question pending ROC filings.
• Continued non-compliance can create difficulty in future corporate applications and transactions.

Do not wait for the last filing date

MCA filing may require data correction, document revision, DSC renewal or clarification from the directors and auditor. Start the review early to avoid last-minute rejection or delay.

Quick company checklist

✓ Confirm the AGM date

✓ Finalise and sign the financial statements

✓ Complete the Auditor’s Report

✓ Complete the Board’s Report and annexures

✓ Verify directors, members and shareholding

✓ Check whether MGT-7 or MGT-7A applies

✓ Confirm that the DSC is valid

✓ File before the applicable due date

Need Assistance With Company Annual Filing?

We can review your company records, prepare the annual-filing checklist and assist with AOC-4, MGT-7 or MGT-7A filing.

Call or WhatsApp: 7760252581

Call Now WhatsApp Us

Disclaimer: This article provides general information based on the Companies Act, 2013 and applicable filing framework as checked on 23 September 2026. The exact forms, attachments and deadlines depend on the company’s classification, AGM date and specific facts.

GST DRC-01B Notice Received? Respond Within 7 Days to Avoid Recovery Action

GST COMPLIANCE ALERT

GST DRC-01B Notice Received?

Respond within 7 days to protect your business from possible recovery action.

GSTR-1

→

GSTR-3B

→

Mismatch Alert

Important: A DRC-01B intimation should not be ignored. It generally means that the tax liability declared in GSTR-1 or IFF is higher than the liability reported and paid through GSTR-3B.

The GST system compares the sales liability reported in GSTR-1 with the tax liability reported in GSTR-3B. Where the difference exceeds the system’s prescribed limit, an electronic intimation may be issued in Form GST DRC-01B Part A.

The taxpayer must check the difference and either pay the applicable amount with interest or submit a valid explanation through DRC-01B Part B.

Why can a DRC-01B mismatch arise?

Wrong invoice value

An invoice or credit note may have been entered incorrectly in GSTR-1.

Tax paid under wrong head

IGST, CGST or SGST may have been reported under an incorrect tax head.

Timing difference

The liability may have been reported or adjusted in a different return period.

GSTR-3B reporting error

Sales liability may have been missed or reduced while filing GSTR-3B.

What should you do after receiving DRC-01B?

1

Download Part A from the GST Portal

Login and go to Services, Returns and Return Compliance. Open the Liability Mismatch DRC-01B section.

2

Reconcile GSTR-1 with GSTR-3B

Compare invoices, debit notes, credit notes, amendments, tax heads and return-period adjustments.

3

Decide whether payment is required

If tax is genuinely short-paid, calculate the tax and applicable interest before making payment through DRC-03.

4

Submit DRC-01B Part B

Mention the DRC-03 ARN where payment is made, provide the reason for the difference, or provide both where required.

Do not give a general reply

Your explanation should match the GST returns and supporting records. Keep invoice-level reconciliation, ledgers, credit notes, payment details and earlier-period adjustments ready.

What can happen if you do not respond?

• The unpaid difference may become recoverable under the GST law.
• Filing of a later GSTR-1 or IFF may be restricted until the pending compliance is completed.
• Interest exposure may continue where tax was genuinely short-paid.
• A weak or unsupported reply may lead to further departmental action.

Simple example

Particulars	Amount
Tax liability reported in GSTR-1	₹2,40,000
Tax liability reported in GSTR-3B	₹2,00,000
Difference requiring verification	₹40,000

The difference of ₹40,000 should first be reconciled. If it represents genuine short payment, the taxpayer may need to pay it with applicable interest. If the difference is due to a valid reporting or timing reason, a clear explanation with supporting documents should be submitted.

Documents to keep ready

✓ GSTR-1 and GSTR-3B copies for the relevant period

✓ Sales register and GST liability ledger

✓ Invoice, debit-note and credit-note details

✓ Electronic liability and cash-ledger details

✓ Earlier and later period adjustment workings

✓ DRC-03 payment details, where applicable

Need Help With a GST DRC-01B Notice?

We can review the mismatch, prepare the reconciliation, calculate the correct liability and assist you in submitting a proper response on the GST Portal.

Call or WhatsApp: 7760252581

Call Now WhatsApp Us

Reference: GST Portal guidance on Return Compliance in Form DRC-01B and Rule 88C of the CGST Rules. Information verified on 22 September 2026. This article provides general information. The correct response depends on the facts and records of each taxpayer.