CBDT has extended the deadline for filing tax audit reports for FY 2024–25 by one month, shifting it from September 30 to October 31, 2025. The move follows petitions from professional associations and interim orders from courts. Despite the tax portal working smoothly, the extension provides relief to taxpayers and audit professionals struggling with disruptions caused by natural calamities and workload pressures.
CBDT Extends Deadline To Report Tax Audits To October 31, 2025: Check Details
CBDT has extended tax audit report filing deadline for FY 2024-25 to October 31, 2025, from September 30. The move follows court orders and representations from tax professionals, offering relief to businesses and auditors.
Summary
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The Central Board of Direct Taxes (CBDT) has announced an extension for the due date to file tax audit reports for the financial year 2024-25 (assessment year 2025-26) to October 31, 2025.
The usual deadline for tax audits is September 30. Chartered Accountants and tax professionals had recently raised concerns regarding the tight approaching deadline which, they said, was difficult to meet given recent income tax changes.
The extension came after these repeated appeals which also cited disruptions caused by floods and natural calamities in some regions that ultimately have made compliance harder to meet.
The matter also reached the courts, with the Rajasthan and Karnataka High Courts directing a one-month extension earlier this week. The Delhi High Court, meanwhile, adjourned its hearing on the same matter after CBDT sought time to examine the recent court orders.
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In its statement, the CBDT clarified that the income-tax e-filing portal has been operating smoothly. As of September 24, over 4.02 lakh tax audit reports had already been uploaded, including 60,000 on a single day. By September 23, more than 7.57 crore income tax returns had been filed.
Despite the system stability, the Board said it took note of representations made by professionals and submissions before courts before deciding to allow more time.
The move offers welcome relief to businesses and professionals who are subject to audit requirements under Section 44AB of the Income-tax Act. Typically, businesses with turnover above Rs 1 crore fall under mandatory audit, though the limit rises to Rs 10 crore if at least 95 per cent of transactions are digital.
Other categories of taxpayers like doctors, lawyers, etc. with annual receipts above Rs 50 lakh are also required for an audit. Taxpayers from different professions, like freelancers, who come under presumptive taxation (u/s Section 44ADA) need an audit if they report lower profits than prescribed.
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Missing the tax audit deadline can attract a penalty of 1.5 per cent of turnover or up to Rs 1.5 lakh - whichever is lower. This one-month window of extension will give taxpayers more breathing space to meet compliance requirements without pressure.
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