The Central Board of Direct Taxes (CBDT) has expanded the scope of its 'SAKSHAM NUDGE' initiative to include tax professionals, reaching out to nearly 12,000 chartered accountants (CAs) and other practitioners who are lagging in filing tax audit reports ahead of the October 21, 2026 deadline for Assessment Year 2026-27. As reported by PTI, the department has sent SMS and email reminders to these underperforming professionals as part of its data-driven approach to compliance improvement. The initiative represents a shift from the previous focus on taxpayers to specifically targeting professionals who have demonstrated below-average compliance rates, with the Income Tax Department selecting professionals whose filings were below half their previous financial year's total according to a senior government official. According to Business Standard, the department found that a significant number of tax audit reports were still awaiting submission even after the deadline extension, prompting the urgent appeal to expedite filings.
The CBDT has identified professionals who have filed fewer than 50% of the number of tax audit reports they submitted in the previous financial year, specifically covering tax audit reports in Form 3CD according to PTI. According to official sources, the department has sent SMSes and emails to these underperforming professionals as part of its data-driven approach to compliance improvement. The official noted that CBDT has observed that a significant number of Tax Audit Reports for AY 2026-27 are yet to be filed despite the extension of the deadline, prompting the urgent appeal to expedite filings. The department's selection criteria focuses on professionals whose filings were below half their previous financial year's total, highlighting the significance of the compliance gap. As per Business Standard, the comparison used to identify professionals for the campaign was based on their current-year filing performance against the number of tax audit reports they filed in the previous financial year, with those who had filed less than half their earlier-year total selected for the outreach.
Despite the department's efforts, more than 19.5 lakh tax audit reports have been filed for assessment year 2026-27, but a significant number remain pending. The original deadline for filing tax audit reports was September 30, which has been extended to October 21, 2026. As reported by PTI, the department has accordingly urged tax professionals to expedite the filing of audit reports, with the extended deadline providing additional time for professionals to complete their filings. The Income Tax Department has urged professionals to speed up their work before the deadline to ensure timely compliance. According to Business Standard, the department's decision to contact professionals with relatively low filing levels indicates that it is still seeking to clear the pending workload before the extended deadline, though the department has not provided a total number of audit reports still outstanding.
Form 3CD is a statement containing details required for a tax audit under the Income-tax Act, which accompanies the tax audit report and covers information relevant to checking whether a taxpayer has complied with applicable tax provisions. As per Business Standard, tax audits generally apply to businesses and professionals whose turnover, gross receipts or other circumstances bring them within the audit requirements prescribed under the income-tax law. A chartered accountant or other eligible tax professional typically assists with the preparation and filing of these documents, with the audit report being separate from the Income Tax return. Taxpayers covered by the audit provisions should check with their tax professionals whether the applicable audit report has been filed and whether any further return-filing obligation remains. The extended deadline is October 21, 2026, and taxpayers should verify the applicable deadline and filing requirements for their specific category rather than assuming the same date applies to every tax-related obligation.
A senior government official explained that SAKSHAM NUDGE is a data-driven, non-intrusive initiative that encourages taxpayers to report correctly and on time. According to PTI, the initiative uses automated data analysis to identify possible mismatches across different records including GST records, banking information and tax filings. The department sends SMS and email alerts to encourage correct reporting, error correction and completion of pending filings, with this approach avoiding immediately turning to court cases or penalties. The official noted that tax professionals also play a crucial role in ensuring overall tax compliance, leading to the department's decision to expand the initiative's scope and recognize their role in helping businesses and other specified taxpayers fulfill their tax audit requirements. As per Business Standard, the initiative is intended to encourage timely filing rather than wait for non-compliance to become a more serious issue, with the department stepping up its outreach to ensure taxpayers and professionals who have yet to complete the process prioritize pending work to avoid last-minute filing problems.
