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)
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
- Update your compliance calendar with 21 October 2026 (tax audit report) and 21 November 2026 (ITR).
- 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.
- 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
Related tools and services
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.
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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.