ITR Filing Extension In Audit Cases: Here’s What Taxpayers Should Know

Taxpayers have an extra month to file their audit reports this year, with the due date now set for October 31, 2025, as noted by Financial Express in a recent report. The move has led to widespread speculation among taxpayers and chartered accountants on whether the Income Tax Return (ITR) filing date for audit cases will also be pushed to November 30. So far, however, there has been no official word from the Central Board of Direct Taxes (CBDT).

The question arises because the audit filing and ITR filing deadlines are closely connected. Normally, taxpayers whose accounts require auditing under Section 44AB of the Income Tax Act must file their audit report by September 30 and their ITR by October 31. With the audit deadline now moved to the end of October, many professionals believe the ITR due date should be extended by a month as well. But without a formal notification, this remains a matter of interpretation rather than law.

Audit Relief Brings Temporary Breather

The CBDT’s decision followed directions from the Rajasthan and Karnataka High Courts, which had asked the department to ease the compliance burden on taxpayers facing system-related glitches and documentation delays. For many businesses, the extension has offered a much-needed breather during a hectic filing season.

Tax consultants say that the audit process often runs close to the wire, particularly for small firms and partnerships that rely on third-party accountants. “When audit timelines get extended, it’s natural to expect the return filing dates to move accordingly,” said a senior chartered accountant based in Mumbai. “The two processes are interlinked; you can’t realistically finalise returns without the audit being completed.”

At the same time, experts have pointed out that the CBDT cannot automatically alter statutory deadlines. Unless a specific circular is issued under Section 119 of the Income Tax Act, the return filing date continues to stand as per the earlier schedule.

Gujarat High Court Seeks Clarification From Tax Authorities

The Gujarat High Court has asked the CBDT to explain why the income tax return filing deadline has not been brought in line with the recently extended audit report due date. A bench led by Justices Bhargav Karia and Pranav Trivedi observed that earlier judicial precedents treated the two timelines as inherently linked, meaning that when the audit date is pushed, the ITR date should follow.

The court is expected to hear the matter again in early October. Until then, professionals are urging taxpayers under audit to play it safe and not wait for a last-minute announcement. Missing the existing deadline could invite penalties or interest, even if the extension is later confirmed.

For now, the audit extension offers short-term relief but leaves a larger question unresolved: whether the compliance calendar will finally be synchronised to match the realities of tax filing. As one Delhi-based tax advisor put it, “An audit extension without a return extension is like giving you the key but locking the door.”