Key Points
- The Central Board of Direct Taxes (CBDT) has extended the deadline for filing tax audit reports for the Assessment Year 2025-26.
- The new due date for submitting the audit report is October 31, 2025, moved from the original deadline of September 30, 2025.
- This extension applies to taxpayers who are required to have their accounts audited under the Income Tax Act.
- The decision was prompted by representations from professional bodies and directives from the Rajasthan and Karnataka High Courts.
New Delhi: In a significant relief for businesses and professionals, the Central Board of Direct Taxes (CBDT) has extended the due date for filing tax audit reports for the financial year 2024-25 (Assessment Year 2025-26). Taxpayers who are required to get their accounts audited now have until October 31, 2025, to file their reports. The announcement was officially made through a press release and shared on the official social media handles of the Income Tax Department.
Reasons Behind the Extension
The decision to push the deadline follows multiple representations received by the CBDT from various stakeholders, including chartered accountant associations and trade bodies. According to a press release dated September 25, 2025, these groups highlighted several challenges faced by taxpayers and tax professionals. Key issues cited included:
- Disruptions caused by severe floods and other natural calamities in several parts of the country, which hampered normal business operations.
- Technical difficulties and the need for more time to collate financial data and complete the complex audit process accurately.
High Courts Intervene
The matter was also escalated to the judiciary, adding pressure on the finance ministry to grant an extension. The Jodhpur bench of the Rajasthan High Court and the Karnataka High Court both heard petitions on the issue. Following the hearings, both courts issued directives to the CBDT, recommending an extension of the deadline to October 31 to provide adequate time for compliance. The CBDT’s decision acknowledges these judicial directives and the practical difficulties on the ground.
Who is Affected by This Extension?
This extension is specifically for taxpayers falling under clause (a) of Explanation 2 to sub-section (1) of section 139 of the Income Tax Act, 1961. In simpler terms, this group primarily includes:
- A company.
- A person (other than a company) whose accounts are required to be audited under the Income Tax Act or any other law.
- A working partner of a firm whose accounts are required to be audited.
It is important to note that this extension is for filing the tax audit report (like Form 3CA-3CD/3CB-3CD) and not necessarily for the Income Tax Return (ITR) itself, though the deadline for filing the ITR for such taxpayers is typically linked to the audit report submission date.
Understanding the Tax Audit
A tax audit is a mandatory review of the financial accounts of a business or profession to ensure they have maintained proper books of accounts and complied with the provisions of the Income Tax Act. Under current law, a tax audit is generally mandatory for:
- Businesses with a total turnover exceeding ₹1 crore in the financial year. This limit is increased to ₹10 crore if cash receipts and payments do not exceed 5% of the total.
- Professionals with gross receipts exceeding ₹50 lakh in the financial year.
