The extension came the next day. We said it would not
The audit report is now due 21 October and the return 21 November. This paper argued the opposite on Sunday and was answered on Monday.
We got this wrong, and it is worth putting the correction on the front page rather than in a footnote. Last week's issue, dated 27 September, led on the view that no extension was coming and that the section 44AB report was due on 30 September. The CBDT answered on 28 September — the next day. A press release extended the specified date for furnishing the audit report from 30 September to 21 October 2026, and the due date for the return of income for those cases from 31 October to 21 November 2026. It applies to the persons at Serial No. 2 of the Table below Explanation 2 to section 139(1) — companies, taxpayers whose accounts must be audited, and partners of such firms. The Board said the formal order giving effect to it would follow separately.
The facts we gave were right and the inference was wrong, which is the more useful half to understand. Net direct tax collections really were up 12.96% and advance tax up 16.18%; extensions really have followed a portal that stopped working or a calamity that stopped people working, not workload. What that reasoning could not see is that the Board does not need the argument to be good — an extension costs it three weeks of float and buys quiet in a filing season, and it will take that trade without explaining itself. So the honest lesson is the symmetric one: plan to the statutory date, because that is the only date you control, and treat an extension as found time rather than as a plan. What you must not do is what the absence of an extension tempted us into last week, which is to tell a client the question is settled.
Two things the extension does not touch, and both catch people. Transfer pricing is not in it. Where section 92E applies, the accountant's report in Form 3CEB stays due 31 October 2026 and the return 30 November 2026 — the press release covered Serial No. 2, not the transfer-pricing entry, so a group with an international transaction has gained nothing and now has the harder date of the two. And an extra thirty-one days to file is not an extra thirty-one days to pay: interest under section 234A has its own history with extensions, which is the subject of the next column.