Income Tax Audit Deadline Extended to October 31, 2025: Relief for Taxpayers
The Central Board of Direct Taxes (CBDT) has extended the due date for filing tax audit reports for the financial year 2024–25. The deadline, which was earlier September 30, 2025, has now been extended to October 31, 2025. This announcement has brought relief to thousands of businesses and professionals who were unable to complete audit compliance due to unforeseen delays.
Why Has the Deadline Been Extended?
The decision was taken after several representations were received from taxpayers and professional bodies. Many parts of the country have been affected by floods and natural calamities, while some taxpayers also reported persistent technical issues on the income tax e-filing portal. Considering these factors, CBDT decided to provide additional time to avoid last-minute pressure and compliance difficulties.
Who Is Required to File a Tax Audit Report?
A tax audit is mandatory under Section 44AB of the Income Tax Act, 1961 for the following categories:
| Category | Criteria for Tax Audit |
|---|---|
| Business entities | Turnover above ₹1 crore (limit extendable up to ₹10 crore if less than 5% cash transactions) |
| Professionals | Gross professional receipts above ₹50 lakh |
A Chartered Accountant (CA) must conduct the audit and upload Form 3CA/3CB along with Form 3CD on the e-filing portal.
Penalty for Missing the Deadline
Taxpayers who fail to file the audit report within the prescribed timeline may face penalties under Section 271B. The penalty may be:
- 0.5% of total turnover or gross receipts, or
- Up to ₹1.5 lakh, whichever is lower.
However, penalties may be waived if the taxpayer can prove a valid reason for delay, such as natural disaster or technical error.
Filing Procedure: What Taxpayers Should Do
Tax audit reports must be uploaded through the official Income Tax e-Filing Portal. Taxpayers are advised to prepare their accounts and documentation in advance. Important items to keep ready include:
- Finalized balance sheet and profit & loss account
- Bank statements and ledgers
- Details of loans, advances and capital accounts
- Purchase, sales, expense records
- TDS/TCS statements
- Previous year audit report (if applicable)
Once the audit report is prepared, the Chartered Accountant will submit it online, and the taxpayer must approve the submission through their income tax portal login.
Expert Opinion
Tax experts have welcomed the extension, calling it a “practical decision” that will help ensure better compliance. They have also advised taxpayers not to wait until the last week of October to avoid system overloading or portal downtime.
Conclusion
With the deadline now extended to October 31, 2025, taxpayers have additional time to complete audit formalities. However, timely filing remains crucial to avoid penalties and notices from the Income Tax Department.
