I-T Department ‘nudges’ tax professionals to expedite audit report filings

The Income Tax Department has expanded its SAKSHAM NUDGE initiative to include tax professionals, urging them to expedite the filing of tax audit reports for assessment year (AY) 2026-27.

According to sources, the department has observed that a significant number of tax audit reports remain pending despite the extension of the filing deadline. As part of the initiative, SMS and email reminders have been sent to professionals who have filed fewer than 50 per cent of the tax audit reports (Form 3CD) compared with the number filed by them in the previous financial year.

Around 12,000 tax professionals have been reached through the campaign, sources said. The extended deadline for filing tax audit reports is October 21 compared with the original deadline of September 30. More than 19.5 lakh tax audit reports for AY 2026-27 have been filed so far, according to sources.

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SAKSHAM NUDGE is a data-driven, non-intrusive initiative aimed at encouraging correct and timely tax reporting. While the campaign initially focused on taxpayers, the department has now widened its scope to include tax professionals, recognising their role in ensuring compliance.

Timely reminders, but delays may have multiple reasons

Shubham Jain, director at SVAS Business Advisors LLP, said the department’s move to reach out to tax professionals based on filing data was welcome, but cautioned against interpreting lower filing numbers as an indication of delayed compliance.

“A lower number of tax audit reports filed by a professional compared with the previous year does not, by itself, mean that the professional is falling behind. The data tells the department where filings are pending, but not why,” Jain said.

He pointed out that completing a tax audit requires access to complete books of account, reconciliations and explanations for discrepancies. Information is often provided by clients in stages, and the audit can be concluded only after outstanding issues have been addressed.

While professionals can follow up with clients and push for timely closure, they cannot generate information that has not been provided, he said.

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Jain added that the initiative could help draw attention to pending filings while there is still time to act. However, he said the department should also use filing data to understand the reasons for delays, many of which could arise from pending information or unresolved discrepancies at the client’s end.

“The objective should be timely filing without compromising the work that goes into the audit. A tax audit report is not just a form to be uploaded before a deadline. The auditor must have the information needed to complete the examination and be satisfied with the report before signing it. The report must be ready to be signed, not merely ready to be uploaded,” he said.

Data-driven approach to improve compliance

Amit Maheshwari, managing partner at AKM Global, said the department’s decision to include tax professionals in SAKSHAM NUDGE marked a positive step towards data-backed compliance reminders.

“Turning attention to professionals reflects that the department sees compliance as a shared responsibility rather than putting the entire burden on taxpayers,” Maheshwari said.

He added that targeted reminders ahead of the extended October 21 deadline could improve filing discipline, reduce last-minute compliance pressures and foster greater trust between taxpayers, professionals and the tax administration.

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According to Maheshwari, the move reflects a broader shift towards analytics, risk-based monitoring and taxpayer facilitation. If applied consistently, such interventions could strengthen voluntary compliance and improve the accuracy of tax reporting.