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CBDT CircularHigh impact for ecommerce sellers

Tax audit report due 21 October 2026, audit-case ITR due 21 November 2026 (AY 2026-27)

Reviewed by CA Apurav GargSummary reviewed

Document
Circular No. 07/2026
Issued
28 Sept 2026
Effective
28 Sept 2026
Issued by
Central Board of Direct Taxes (CBDT)
Official PDF(opens in a new tab)

Want help working out what this means for your business?

We handle GST and TDS compliance, returns and notice replies for D2C and marketplace sellers, and can walk you through how a change applies to your books.

On this page

What it means for ecommerce sellers

For Assessment Year 2026-27 (financial year 2025-26), CBDT has extended the due date of the income-tax return for the persons covered by that clause of Explanation 2 to section 139(1) (broadly, businesses whose accounts must be audited) from 31 October 2026 to 21 November 2026. As a result, the tax audit report under section 44AB is now due on 21 October 2026. Most D2C companies and LLPs above the tax audit limit fall in this group.

Who it affects

  • Companies
  • Businesses and firms whose accounts must be audited (section 44AB)
  • Partners of such firms

Before and after

  • ITR due date for audit cases, AY 2026-27

    Before
    31 October 2026
    After
    21 November 2026
  • Tax audit report (specified date), AY 2026-27

    Before
    30 September 2026
    After
    21 October 2026

What to do

  1. Update your compliance calendar with 21 October 2026 (tax audit report) and 21 November 2026 (ITR).
  2. Note that the circular extends the filing dates; check separately how interest for late payment of tax is affected before relying on the new date for payment.
  3. Close the books and finish the GST-to-books turnover reconciliation early, since the audit report needs it.

Provisions referred to: Section 119 Income-tax Act, 1961; Section 536 Income-tax Act, 2025; Section 139(1) Explanation 2; Section 44AB

Official text

As issued by Central Board of Direct Taxes (CBDT). Where the text starts with “Extract”, only the parts that concern ecommerce sellers are reproduced; the official PDF (opens in a new tab) is the authoritative version.

Type a word, number or section to highlight it below.

Circular No. 07/2026 F. No. 225/128/2026/ITA-II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, dated 28th September, 2026 Subject: - Extension of timelines for filing of various reports of audit and Income Tax Returns (ITRs) for the Assessment Year 2026-27– reg. The Central Board of Direct Taxes (CBDT), in exercise of its powers under Section 119 of the Income-tax Act, 1961 (the Act) read with section 536 of the Income-tax Act, 2025, hereby extends the due date for furnishing Return of Income for the Assessment Year 2026-27 (Previous Year 2025-26) for the persons referred in sl.no.2 of the table below Explanation 2 to sub-section (1) of section 139 of the Act, from 31.10.2026 to 21.11.2026. Consequently, the specified date for furnishing of report of audit for the Assessment Year 2026-27 (Previous Year 2025-26) shall stand extended to 21.10.2026 in terms of clause (ii) of Explanation to section 44AB of the Income-tax Act,1961. (Dr. Indu Bala) Deputy Secretary to the Government of India

Questions sellers ask

What is the extended ITR due date for AY 2026-27 audit cases?

CBDT Circular No. 07/2026 dated 28 September 2026 extends it from 31 October 2026 to 21 November 2026.

What is the new due date for the tax audit report?

The specified date for furnishing the report of audit for AY 2026-27 stands extended to 21 October 2026.

Which law is the extension issued under?

Section 119 of the Income-tax Act, 1961, read with section 536 of the Income-tax Act, 2025, since AY 2026-27 is still governed by the 1961 Act.

Does the extension apply to every taxpayer?

No. It applies to the persons covered by the clause of Explanation 2 to section 139(1) named in the circular, which broadly covers audit cases. Other due dates are not changed by this circular.

Want help working out what this means for your business?

We handle GST and TDS compliance, returns and notice replies for D2C and marketplace sellers, and can walk you through how a change applies to your books.

General information only, not professional advice. The summary is ecomca’s reading of the document; the official PDF is the authoritative version, and later amendments may change it. Check the official source before you act.