Gondley Consulting
ITR documents checklist for audit clients, AY 2026-27: what to collect, and the messages to send
Ayush Gondley · 14 October 2026 · 6 min read
Most of an audit client's file is the same list every year. Getting it in on time is the hard part.
Key takeaways
- For AY 2026-27 the tax audit report is due by 21 October 2026 and the return for audit cases by 21 November 2026, after CBDT Circular No. 07/2026.
- Start from what the department already has. AIS shows what other organisations reported about the client's income and transactions, and from AY 2023-24 Form 26AS shows only TDS and TCS. AIS may not show everything, so the client's own records are still needed.
- For a business, the audit threshold is ₹1 crore of turnover, or ₹10 crore if cash receipts and cash payments are each within 5% of the totals. So the client's cash figures belong on the list too.
- Send one list with a cut-off date, follow up only on what is missing, and ask about anything in AIS that does not match. The requests can run by themselves; the audit and the judgment stay with your team.
For an audit client, the work starts when the documents arrive, and they rarely arrive together. Bank statements come first, the stock figure comes last, and the one loan certificate that matters is still with the client's bank in the week of the deadline. A checklist sent early, with a cut-off date, is what keeps October from turning into a chase.
The dates this year
On 28 September 2026, CBDT Circular No. 07/2026 extended the due date of the return for AY 2026-27 (previous year 2025-26), for the persons in serial number 2 of the table in Explanation 2 to section 139(1), from 31 October 2026 to 21 November 2026. The tax audit report date moved to 21 October 2026.1 The rest of the half-year is in our compliance calendar.
Who needs the audit, under section 44AB:2
- A business whose total sales, turnover or gross receipts for the year exceed ₹1 crore. The limit is ₹10 crore when cash receipts and cash payments during the year do not exceed 5% of total receipts or payments.
- A profession whose gross receipts for the year exceed ₹50 lakh.
- Presumptive cases. A business on the presumptive scheme of section 44AD with turnover up to ₹2 crore is outside the first rule. A client who leaves the section 44AD scheme within five years and declares a lower profit, or who claims a profit lower than the section 44ADA figure, comes into audit if their income is above the amount not chargeable to tax.
Start with what the department already has
- AIS (Annual Information Statement) is the department's view of the information it holds for the taxpayer, shown before the return is filed, with a way to give feedback on each item. It shows both the reported value and the value after the taxpayer's feedback.3
- Form 26AS. From AY 2023-24 onwards, Form 26AS on the TRACES portal shows only TDS and TCS. The other information is in AIS.3
- AIS is not the whole picture. In the department's words, there may be other transactions that are not displayed in AIS, and the taxpayer is expected to check all related information and report complete and accurate information in the return.3
- TDS certificates should already be out. Employers issue Form 16 by 15 June after the year, and deductors issue Form 16A quarterly, the last quarter's by 15 June.4 For 2025-26, both were due by 15 June 2026.
Our recommendation: download AIS and Form 26AS for each audit client before you send the list. Anything in them that you cannot match to the client's books becomes a question in the list, not a surprise at the end.
The checklist
A starting list for a business or professional client under audit for 2025-26. Add or remove lines for each client, and keep each client's list from year to year.
Documents for the AY 2026-27 audit and return · for April 2025 to March 2026
Accounts and banks
· Statements for every bank account, including closed ones, for the whole year
· Loan statements and interest certificates, for business and personal loans
· The year's cash book, or a summary of cash received and paid
Sales, purchases and GST
· Sales and purchase registers, or the accounting file
· GST returns filed for the year (GSTR-1 and GSTR-3B)
· Stock as on 31 March 2026, with how it was valued
Expenses and assets
· Bills for assets bought or sold during the year
· Salary and wage sheets, and rent agreements
· TDS deducted on payments, with the challans and the TDS statements filed
Tax already paid
· Advance tax and self-assessment tax challans
· Form 16A received, and Form 16 if the client also had a salary
Everything else
· Sale of shares, mutual funds or property, with purchase details
· Proof of any deductions the client wants to claim
· Last year's return and audit report, and any losses carried forward
The cash figures are on the list for a reason: whether a business above ₹1 crore of turnover needs an audit at all can depend on whether its cash receipts and payments stayed within 5%.2
Messages you can copy
Replace the words in brackets. Write them in English or Hindi, whichever your clients use. Choose your own cut-off for documents, well before 21 October, as in our GST reminders.
The list · as soon as possible, to each audit client
Namaste [Name] ji, this is [Firm]. Your tax audit for 2025-26 is due by 21 October and the return by 21 November. To finish on time, please send the documents in the list below by [cut-off date]. Photos or PDFs here are fine, or you can share a folder link. [List]
A question from AIS · when something in AIS does not match the books
Namaste [Name] ji, the department's statement (AIS) shows [item, e.g. interest of ₹X from Y Bank] for 2025-26. We could not find it in your accounts. Is it correct? If it is not yours, or the amount is wrong, tell us and we will check it with you.
What is still missing · a few days before the cut-off, only to clients with items pending
Namaste [Name] ji, thank you for the documents so far. We still need: [missing items]. Please send them by [cut-off date] so the audit can be completed before 21 October.
Ready for review · when the computation is ready
Namaste [Name] ji, your audit report and return for AY 2026-27 are ready for your review. The tax payable is [₹ amount / nil]. Can we go through them on [day and time]? The return is due by 21 November.
When the return is filed, send the acknowledgement with the next date, as in the filed confirmation in our compliance calendar.
What can run by itself
- Each client's list, from last year's list and the kind of client they are, sent on the date you choose.
- A tracker of which documents each client has sent, updated as files arrive.
- Follow-ups that name only the missing items, go only to clients with something pending, and stop once the file is complete.
- A weekly list for your team of clients who are ready for audit and clients still waiting on documents.
What stays with your team
- The audit and the return. All of the work and the professional judgment.
- Reading AIS. Deciding what a mismatch means, and what to ask the client.
- Difficult clients. The ones who send nothing until the last week, and that conversation.
Count it first
For this audit season, note the day each client's file was complete, and how many messages and calls it took. Clients who finished late are where the reminders help most, and next year you will have a date to compare. When the audit fee is billed, our fee reminder templates cover the follow-up. More of what we write for CA practices is on the blog.
Questions CAs ask
What is the due date for the tax audit report and return for AY 2026-27?
The tax audit report by 21 October 2026, and the return for audit cases by 21 November 2026, after CBDT Circular No. 07/2026.
Who needs a tax audit for 2025-26?
Under section 44AB, a business with turnover above ₹1 crore (₹10 crore if cash receipts and payments are each within 5% of the totals) and a profession with gross receipts above ₹50 lakh, among others. Presumptive scheme cases have their own rules.
What is the difference between AIS and Form 26AS?
From AY 2023-24, Form 26AS on TRACES shows only TDS and TCS. AIS shows the other information the department holds, and lets the taxpayer give feedback on each item.
Is AIS enough to prepare the return?
No. The department says there may be other transactions that AIS does not display, and the taxpayer is expected to report complete and accurate information. AIS is a check against the client's records, not a replacement for them.
Sources
- Central Board of Direct Taxes, Circular No. 07/2026 (PDF), 28 September 2026.
- Income Tax Department, FAQs on tax audit: As per section 44AB, who is compulsorily required to get his accounts audited?
- Income Tax Department, FAQs on AIS (Annual Information Statement).
- Income Tax Department, Form 16 and Form 16A.
About the author
Ayush Gondley founded Gondley Consulting, which builds automation for CA practices in India: client documents before deadlines, compliance calendars, fee reminders and onboarding. Before that he was a marine engineer at Maersk, keeping complex systems running at sea. He is based in Indore. Gondley Consulting on LinkedIn
