Looking for expert help with Tax audit and compliance help? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant. End-to-end filings, notices, and deadline tracking, all in one place.
Key points
- The tax audit report under Section 44AB for FY 2025-26 is due 30 September 2026. As of 21 September 2026, CBDT had not extended it.
- The second advance tax instalment for tax year 2026-27 was due 15 September 2026. A shortfall costs 1% per month for a fixed 3 months under Section 425 of the Income-tax Act, 2025.
- TDS deducted in September is due by 7 October 2026. The Q2 TDS and TCS statements (Forms 138, 140, 144 and 143) are due by 31 October 2026.
- The ITR for audit cases (AY 2026-27) is due 31 October 2026.
- DIR-3 KYC is no longer a September deadline. It is now due once every three years by 30 June.
September is the busiest compliance month for audited businesses. The audit report is due, the second advance tax instalment has just passed, quarterly TDS statements are being prepared, and the ITR for audit cases is due a month later.
One point to keep straight: FY 2025-26 (AY 2026-27) is still governed by the Income-tax Act, 1961, so the tax audit and the ITR follow Section 44AB and the old forms. Transactions from 1 April 2026 (tax year 2026-27) fall under the Income-tax Act, 2025, so advance tax, TDS and TCS for this year use new section numbers and new forms.
The September to October 2026 Calendar
| Date | Compliance | Who |
|---|---|---|
| 15 September 2026 | Advance tax, 2nd instalment (45% cumulative) | Taxpayers whose tax for the year is Rs 10,000 or more (presumptive taxpayers excepted) |
| 30 September 2026 | Tax audit report (Form 3CA/3CB with 3CD), FY 2025-26 | Businesses and professionals above the Section 44AB limits |
| 7 October 2026 | TDS/TCS deposit for September | All deductors and collectors |
| 11 October 2026 | GSTR-1 for September (monthly filers) | GST-registered, monthly |
| 13 October 2026 | GSTR-1 for July to September (QRMP) | GST-registered, quarterly |
| 20 October 2026 | GSTR-3B for September (monthly filers) | GST-registered, monthly |
| 22 or 24 October 2026 | GSTR-3B for July to September (QRMP, by state) | GST-registered, quarterly |
| 31 October 2026 | ITR for audit cases (AY 2026-27) | Audited businesses, companies, working partners of audited firms |
| 31 October 2026 | Q2 TDS/TCS statements: Forms 138, 140, 144, 143 | All deductors and collectors |
| 31 October 2026 | Tax audit report and Form 3CEB for transfer pricing cases | Businesses with international or specified domestic transactions |
Verify the current dates on incometax.gov.in and gst.gov.in before acting. Deadlines can be extended by notification.
Tax Audit: What Must Be Done Before 30 September
The audit report in Form 3CA or 3CB, with the statement of particulars in Form 3CD, must be uploaded by the auditor and accepted by you on the e-Filing portal by 30 September 2026.
Who needs a tax audit for FY 2025-26
| Category | Audit required if |
|---|---|
| Business | Turnover above Rs 1 crore |
| Business with cash of 5% or less (cash receipts and cash payments each within 5% of the total) | Turnover above Rs 10 crore |
| Profession | Gross receipts above Rs 50 lakh |
| Presumptive scheme (44AD, 44ADA, 44AE) | Income declared below the prescribed rate and total income above the basic exemption limit (plus, for 44AD, the opt-out rule in Section 44AD(4)) |
Source: Section 44AB, Income-tax Act, 1961. More detail in our Section 44AB thresholds guide.
The Rs 75 lakh figure you may have seen for professionals is the Section 44ADA presumptive limit, not the audit threshold.
The audit report forms
| Form | Used when |
|---|---|
| Form 3CA | Accounts are already audited under another law (for example, a company under the Companies Act) |
| Form 3CB | Accounts are not audited under any other law |
| Form 3CD | Statement of particulars (44 clauses), filed with 3CA or 3CB |
Form 3CD covers items such as depreciation, related-party payments, TDS compliance, loans and deposits taken or repaid in cash, Section 43B payments and disallowances.
Tax Audit Preparation Checklist
Step-by-Step Guide
Tax Audit Preparation Checklist
Finish these before the auditor signs
Close the books
Post all entries, pass year-end provisions, and tally the trial balance. Freeze FY 2025-26 once the auditor starts.
BooksReconcile every bank account
Match each bank statement to the ledger and prepare a bank reconciliation for 31 March 2026.
BankReconcile GST with books
Match GSTR-1 to the sales register, GSTR-3B liability to GSTR-1, and ITC claimed to GSTR-2B and the purchase register. Explain every difference.
GSTReconcile TDS
Check that TDS you deducted was deposited and reported, and that TDS deducted by your customers appears in Form 26AS. Chase customers for missing credits.
TDSCheck AIS and TIS
Download AIS for FY 2025-26 and compare interest, dividends, sales, purchases and property transactions with your books. Submit feedback on wrong entries.
AISPrepare Form 3CD schedules
Depreciation chart, related-party payments, loans and deposits, TDS defaults, Section 43B payments, MSME dues and disallowances.
3CDReview pending notices
Check e-Proceedings on the income tax portal and notices on the GST portal, so pending demands can be reported correctly.
NoticesUpload and accept
The auditor uploads Form 3CA/3CB-3CD. You accept it from your own login by 30 September and download the acknowledgment.
FileSource: Income-tax Act, 1961, Section 44AB; ICAI Guidance Note on Tax Audit
Get it right before signing. Rule 6G of the 1961 Rules allows a revised audit report only in limited cases, so mismatches found later cannot always be fixed by revising.
Advance Tax: The 15 September Instalment
Advance tax for tax year 2026-27 falls under the Income-tax Act, 2025.
| Instalment | Due date | Cumulative amount |
|---|---|---|
| 1st | 15 June 2026 | 15% |
| 2nd | 15 September 2026 | 45% |
| 3rd | 15 December 2026 | 75% |
| 4th | 15 March 2027 | 100% |
If you paid less than required by 15 September
Under Section 425 of the Income-tax Act, 2025 (Section 234C of the 1961 Act):
- No interest if you paid at least 36% of your tax by 15 September.
- Otherwise, interest is 1% per month for a fixed 3 months on the shortfall against 45%.
Example: tax for the year Rs 20 lakh. Required by 15 September: 45% = Rs 9 lakh. You paid Rs 4 lakh (20%, below 36%). Shortfall Rs 5 lakh x 1% x 3 = Rs 15,000.
Because the 3-month period is fixed, paying the shortfall on 20 September does not reduce this Rs 15,000. It does reduce the shortfall tested on 15 December, which protects you from further Section 425 interest. Details in our 234B and 234C interest guide.
Presumptive taxpayers
If you use the presumptive schemes for business or profession (formerly Sections 44AD and 44ADA), you can pay all advance tax in one instalment by 15 March 2027.
TDS and TCS: September and October
Monthly deposit
Tax deducted or collected in September 2026 is due by 7 October 2026. Late deposit attracts interest of 1.5% per month or part of a month from the date of deduction under Section 398 of the Income-tax Act, 2025 (Section 201(1A) of the 1961 Act).
Q2 statements (July to September 2026)
From tax year 2026-27, the old forms have been renumbered under the Income-tax Rules, 2026:
| New form | Old form | Covers | Due date |
|---|---|---|---|
| Form 138 | 24Q | TDS on salary | 31 October 2026 |
| Form 140 | 26Q | TDS on other payments to residents | 31 October 2026 |
| Form 144 | 27Q | TDS on payments to non-residents | 31 October 2026 |
| Form 143 | 27EQ | TCS | 31 October 2026 |
The TCS statement used to be due on the 15th. In Form 143 it now follows the TDS calendar and is due on the 31st.
A late statement attracts a fee of Rs 200 per day, capped at the TDS amount, under Section 427 of the 2025 Act (Section 234E of the 1961 Act).
Before filing the Q2 statement
- Match TDS deducted with challans deposited.
- Check deductee PANs are valid, since an inoperative PAN can mean a higher rate.
- Use the right Section 393 payment code. For example, contractor payments (old 194C) are Section 393(1) Sl. 6(i), payment code 1023 for individuals and HUFs and 1024 for others. See our Section 393 code guide.
- Apply lower or nil deduction certificates correctly. From 1 April 2026 these are applied for in Form 128 (formerly Form 13) under Section 395.
GST Reconciliation Before the Audit
| Check | What to match |
|---|---|
| GSTR-1 vs sales register | Every invoice, credit note and amendment |
| GSTR-3B vs GSTR-1 | Output tax declared vs output tax reported |
| GSTR-2B vs purchase register | ITC claimed is supported by supplier filings |
| E-invoices vs GSTR-1 | IRN invoices appear in B2B supplies |
| E-way bills vs GSTR-1 | Movements match reported supplies |
About IMS: the Invoice Management System is optional. Invoices you do not act on are deemed accepted when GSTR-2B is generated. Use it to reject or keep pending invoices you dispute before filing GSTR-3B.
AIS and Form 26AS
| Statement | What to check |
|---|---|
| AIS | Interest, dividends, securities and property transactions, GST turnover, foreign remittances |
| TIS | Summary values used to pre-fill the ITR |
| Form 26AS | TDS and TCS credits, advance and self-assessment tax paid |
If AIS shows a wrong or duplicate entry, submit feedback on the e-Filing portal and file your ITR with the correct figures. Keep the evidence, as the correction by the reporting entity can take time.
Common Mistakes in September
| Mistake | Consequence | How to avoid |
|---|---|---|
| Signing the audit report with unreconciled GST | Wrong 3CD reporting; revision may not be possible | Finish GST reconciliation before signing |
| Not deducting or not paying TDS on expenses | 30% of the expense disallowed under Section 40(a)(ia) (residents) | Review TDS on every expense head before year-end figures are final |
| Missing TDS credits in Form 26AS | Credit not given in the ITR | Reconcile 26AS and chase customers |
| Short advance tax on 15 September | Section 425 interest, 1% x 3 months | Pay before 15 December to limit further interest |
| Ignoring AIS mismatches | Adjustment or notice after processing | Reconcile and give feedback |
| Late TDS deposit | 1.5% per month under Section 398 | Deposit by 7 October |
| Auditor uploads, taxpayer forgets to accept | Report treated as not furnished | Accept from your login by 30 September |
Key Dates at a Glance
| Item | Date |
|---|---|
| Advance tax, 2nd instalment | 15 September 2026 (45%) |
| Tax audit report, FY 2025-26 | 30 September 2026 |
| TDS/TCS deposit for September | 7 October 2026 |
| GSTR-1 / GSTR-3B for September (monthly) | 11 / 20 October 2026 |
| ITR for audit cases, AY 2026-27 | 31 October 2026 |
| Q2 Forms 138, 140, 144, 143 | 31 October 2026 |
| Transfer pricing audit and Form 3CEB | 31 October 2026 |
| Penalty for late audit report | Section 271B: lower of 0.5% of turnover or Rs 1.5 lakh (details) |
| DIR-3 KYC | Not in September: every 3 years by 30 June (details) |
For the full year, see our FY 2026-27 compliance calendar.
How Tax Garden Can Help
September is when books, GST, TDS and advance tax all have to line up. Tax Garden can help you:
- Close FY 2025-26 books and prepare the trial balance and 3CD schedules for your auditor
- Reconcile GSTR-1, GSTR-3B and GSTR-2B with your books
- Match TDS with Form 26AS and AIS
- Work out the advance tax you owe and pay the next instalment
- Deposit September TDS and file the Q2 statements in Forms 138, 140, 144 and 143
- File the ITR for audit cases by 31 October 2026
Sources: Income-tax Act, 1961 (Sections 44AB, 40(a)(ia), 271B, 273B; Rule 6G); Income-tax Act, 2025 (Sections 393, 395, 398, 425, 427); Income-tax Rules, 2026 (Forms 128, 138, 140, 143, 144); Companies (Appointment and Qualification of Directors) Rules, Rule 12A as substituted by G.S.R. 943(E); GST portal (gst.gov.in). Verify current dates on incometax.gov.in before acting. This article is general information, not professional advice.
Frequently Asked Questions
What is the tax audit report due date for AY 2026-27?
The tax audit report under Section 44AB of the Income-tax Act, 1961 for FY 2025-26 (AY 2026-27) is due by 30 September 2026, one month before the 31 October ITR due date for audit cases. As of 21 September 2026, CBDT had not extended it. Transfer pricing cases file the audit report and Form 3CEB by 31 October 2026.
Who needs a tax audit for FY 2025-26?
A business needs an audit if turnover exceeds Rs 1 crore. The limit is Rs 10 crore if cash receipts and cash payments each do not exceed 5% of the total. A professional needs an audit if gross receipts exceed Rs 50 lakh. Presumptive taxpayers who declare income below the prescribed rate and whose income exceeds the basic exemption limit may also need an audit.
What if I missed the 15 September 2026 advance tax instalment?
If you paid less than 36% of your tax by 15 September 2026, interest under Section 425 of the Income-tax Act, 2025 (Section 234C of the 1961 Act) is 1% per month for a fixed 3 months on the shortfall against 45%. The period is fixed, so paying late does not reduce it, but paying before 15 December reduces the shortfall for the third instalment.
When is TDS for September 2026 due?
Tax deducted in September 2026 must be deposited by 7 October 2026. Late deposit attracts interest at 1.5% per month or part of a month from the date of deduction under Section 398 of the Income-tax Act, 2025 (Section 201(1A) of the 1961 Act).
Which TDS return forms are due on 31 October 2026?
For the July to September 2026 quarter, file Form 138 (salary, formerly 24Q), Form 140 (resident non-salary, formerly 26Q), Form 144 (non-residents, formerly 27Q) and Form 143 (TCS, formerly 27EQ). All four are due by 31 October 2026.
Is DIR-3 KYC due on 30 September 2026?
No. Rule 12A as substituted by G.S.R. 943(E) (effective 31 March 2026) moved DIR-3 KYC to once every three financial years, due by 30 June. Directors who completed KYC under the old annual rule file next by 30 June 2028. File within 30 days only if your mobile number, email or address changes.
What is the penalty for missing the tax audit deadline?
Under Section 271B of the Income-tax Act, 1961, the penalty is 0.5% of turnover or gross receipts, or Rs 1.5 lakh, whichever is lower. Under Section 273B no penalty is imposed if you show reasonable cause for the delay. File the report as soon as possible even after the due date.
Is the Invoice Management System (IMS) mandatory for GST?
No. Acting on invoices in IMS is optional. Invoices you do not act on are deemed accepted when GSTR-2B is generated. Use IMS to reject or keep pending invoices you dispute before filing GSTR-3B.
Work with the Trusted Tax & Compliance Services in Kondapur, Hyderabad - Tax Garden for expert GST filing, ITR, TDS, ROC, and startup compliance support.
Frequently Asked Questions: Tax Services in Kondapur & Hyderabad
What makes Tax Garden a preferred GST consultant in Kondapur?
Tax Garden is ISO 9001:2015 certified and backs every engagement with Kavach, our ₹50,000 error-protection cover. Our flat-fee, no-surprise pricing and dedicated account manager make us a compliance partner for startups and SMEs in Kondapur's HITEC City corridor.
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Trust comes from three pillars at Tax Garden. First, transparency: you know the exact fee before you sign up, and it never changes mid-year. Second, certified expertise: our compliance team is qualified, and the firm holds ISO 9001:2015 certification. Third, accountability: Kavach, our unique error-protection plan, covers up to ₹50,000 in service charges for any clerical mistake made by our team.
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Yes. Tax Garden's office is in Kondapur itself (CWS One Building, Hanuman Nagar). You can book an in-person consultation or get everything done fully online via WhatsApp and our client portal. We serve walk-in clients by appointment and remote clients across all of Hyderabad and Telangana.
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Tax Garden is located at 4th Floor, South Block, CWS One Building, Hanuman Nagar, Kondapur, Hyderabad, Telangana 500084. We serve clients across Kondapur, HITEC City, Gachibowli, Madhapur, Jubilee Hills, Banjara Hills, and all of Hyderabad.
Can I get GST filing and registration services in Kondapur?
Yes. Tax Garden offers end-to-end GST services from our Kondapur office: GST registration, GSTR-1, GSTR-3B, GSTR-9 annual returns, ITC reconciliation, e-invoicing setup, and GST notice handling for businesses of all sizes in Kondapur and Hyderabad.
Do you file ITR for salaried employees and businesses in Hyderabad?
Yes. Our Kondapur team files ITR for salaried employees, freelancers, consultants, business owners, LLPs, and companies across Hyderabad. We cover ITR-1 through ITR-6 with complete Chapter VI-A deduction reconciliation, AIS reconciliation, and proactive deadline management.
Which areas in Hyderabad does Tax Garden serve?
Tax Garden's Kondapur office serves clients across Hyderabad including HITEC City, Gachibowli, Madhapur, Jubilee Hills, Banjara Hills, Begumpet, Secunderabad, Ameerpet, Kukatpally, Uppal, LB Nagar, and all of Telangana. Most services are available fully online.
What compliance services does Tax Garden offer for startups in Kondapur?
Tax Garden is a compliance partner for startups in Kondapur and Hyderabad's HITEC City corridor. We handle company incorporation, GST registration, TDS filings, payroll, ROC annual filings, director KYC, and annual ITR filing, all under one flat-fee plan.
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Unlike traditional accounting practices that charge hourly and are difficult to reach, Tax Garden operates on flat-fee subscription plans with a dedicated account manager, monthly compliance updates, and WhatsApp-first communication. Our AI-powered workflow catches errors before filings are submitted, and Kavach error-protection ensures you are never left alone if something goes wrong.
