FY 2025-26 Tally Audit Is Unlike Any Year Before It
Here's something worth knowing before your CA calls.
This financial year, the statutory audit for most Indian companies isn't just a routine check. It's the first full-year review where three major changes landed simultaneously — and most businesses running their books in TallyPrime are only half-aware of what's coming.
The year your auditor checks more than usual
Since April 2023, every registered company's statutory auditor is legally required to verify that your accounting software ran an uninterrupted edit log throughout the year. Not just that the feature exists — that it was never disabled, not even for a day. This is the third year that requirement applies, and enforcement has tightened. If your TallyPrime wasn't running the Edit Log edition, that's not a minor oversight. It shows up directly in the audit report and in CARO 2020 reporting.
Then there's GST 2.0. From 22nd September 2025, India's rate structure changed — the 12% and 28% slabs were abolished, a 40% band introduced. Your books carry two different rate regimes in a single year. Auditors reviewing GST reconciliation in Tally this season will be checking whether your GSTR-1 filings reflect the correct rate for the correct period — April to September under the old structure, October onwards under the new one. Any invoice in the transition window with the wrong rate applied is a query.
And from April 2026, the Income Tax Act 2025 replaces the 1961 Act — new section numbers, revised Form 3CD references, TDS sections renumbered. Your TDS audit in TallyPrime needs to cross-reference both old and new section numbers depending on which period the deduction falls in.
Three changes. One set of books.
What this actually means in Tally
Bank reconciliation in Tally still matters — a year of unreconciled entries is still the most common observation for Indian SMEs. That hasn't changed.
What has changed is the context around it. The auditor arriving for your statutory audit preparation isn't just checking whether your numbers balance. They're verifying your edit log continuity, your GST rate accuracy across the September transition, and your TDS section references against the new Act. Backdated voucher entries and GSTR-2B reconciliation gaps — already the most flagged items in Tally audit reviews — now sit inside a more complex regulatory backdrop.
None of this is insurmountable. TallyPrime has the reports — the Tally Audit listing, the GSTR-2B reconciliation screen, the TDS ledger reports. The work is running them proactively, before the query list arrives.
The deadline most people forget
The statutory audit must be completed before the AGM — generally by 30th September 2026. That's closer than it feels. And with ICAI's new 60-audit-per-partner cap taking effect from April 2026, the CAs businesses rely on are filling their calendars faster this year. Waiting until August is a real risk in 2026 in a way it wasn't before.
For a grounded walkthrough of audit preparation in TallyPrime — GSTR-2B reconciliation, voucher verification, bank reconciliation — this Tally audit guide for FY 2025-26 from Seerweb Solutions is worth reading before the season starts.
The audit isn't harder this year because the rules are complicated. It's harder because more things changed at once.













