Audit season brings together two related but distinct obligations for Indian businesses: the statutory audit required under the Companies Act, 2013, and the tax audit required under the Income Tax Act. Getting the timelines and requirements right for both is essential to avoid penalties. Here is what companies need to track for FY 2025-26 (AY 2026-27).
Every company registered under the Companies Act — Private Limited, Public Limited, One Person Company, or Section 8 Company — must have its accounts audited each year, regardless of turnover. There is no minimum threshold below which a company is exempt; audit is mandatory purely by virtue of being incorporated as a company.
The statutory audit needs to be completed in time for the company’s Annual General Meeting (AGM), which must be held within six months of the close of the financial year. For most companies with a financial year ending 31 March 2026, this places the practical completion deadline around 30 September 2026.
Separately, businesses and professionals whose turnover or receipts cross the prescribed limits under Section 44AB are required to get a tax audit done and file Form 3CA/3CB along with Form 3CD. For FY 2025-26, the tax audit report is due by 30 September 2026, with the corresponding income tax return to be filed by 31 October 2026.
Non-compliance is costly on both fronts. Under the Companies Act, penalties for failing to get accounts audited can range from ₹25,000 up to ₹5 lakh for the company, with additional penalties of up to ₹10 lakh possible for the auditor in cases of default. Under the Income Tax Act, a delayed or missed tax audit can attract a penalty under Section 271B, in addition to the consequences of a late income tax return.
Companies that begin preparing their books and reconciliations well before the financial year closes tend to have a smoother, faster audit, fewer surprises, and more time to address any issues an auditor raises before the deadline pressure sets in.
Our team conducts statutory and tax audits for companies across Dehradun, and works with clients throughout the year to keep their books audit-ready rather than scrambling in September. Reach out to us to plan your FY 2025-26 audit well ahead of the deadline.
This article is intended as general guidance. Audit thresholds, deadlines, and penalty provisions are subject to government notifications and may change; please consult our team for advice specific to your company.