Countdown Begins For Income Tax Audit Filings

The clock is ticking for taxpayers whose accounts need to be audited. Companies, proprietorships, and working partners in firms have only a short window left to file their income tax returns (ITR) for the financial year 2024–25, according to a recent report by News18. The Central Board of Direct Taxes (CBDT) had earlier granted some breathing space by extending the deadline for submitting tax audit reports from September 30 to October 31, 2025.

For chartered accountants and tax practitioners, the final days of October are always hectic. Offices are open late, phones keep ringing, and spreadsheets get checked and rechecked. Everyone wants to close the books properly before hitting the upload button on the income-tax portal. There’s no room for error when the deadline is this close.

Missing The Deadline Can Sting

The tax audit isn’t just another formality. A tax audit, at its core, is meant to see if what’s shown in the books actually adds up. Once a business or professional crosses the turnover limit set out in Section 44AB of the Income-tax Act, a chartered accountant has to go through the accounts and sign off on them. It’s a way for the department to ensure that what’s reported on paper reflects what’s happening in business.

Failing to meet the audit deadline, however, can be expensive. Gaurav Jain, partner – direct tax at Forvis Mazars India, told News18 that a delay could attract a penalty under Section 271B, equal to 0.5 per cent of total sales, turnover, or gross receipts, up to Rs 1.5 lakh. More than the penalty, he cautioned, the lapse may invite unwanted scrutiny from the department and dent a taxpayer’s compliance record.

There is some flexibility built into the law. If the delay stems from a genuine cause—such as technical issues, health emergencies, or unavoidable circumstances- the tax officer may waive the penalty under Section 273B. Even then, the onus rests on the taxpayer to prove that the delay was unavoidable and well-documented.

Extension Looks Unlikely

Despite the usual flurry of requests, a further extension of the deadline appears improbable this year. The date is fixed by law, September 30 for most assessees, and October 31 for those subject to transfer-pricing provisions. Only the CBDT has the authority to modify it through an official notification, which it generally does only when there are major disruptions like system failures or natural calamities.

Taxpayers engaged in international or specified domestic transactions have until November 30, 2025, to file their ITR, but their audit reports must still be uploaded by October 31. With no fresh announcements so far, experts advise completing the process early rather than waiting for an extension that may never come.

As one senior tax consultant put it, “A clean audit filed on time does more than meet compliance; it builds trust, keeps your financial image intact, and lets you focus on business instead of bureaucracy.”