The BRICS TimesDeadline for Income Tax Audit Report Filing Extended to October 31, 2025. The CBDT has shifted the due date for filing audit reports for the Previous Year 2024-25 (AY 2025-26) from September 30, 2025, to October 31, 2025. The decision follows multiple representations from professional bodies pointing to disruptions caused by floods and natural disasters, even though the e-filing portal continues to run smoothly.
The Central Board of Direct Taxes (CBDT) has officially extended the deadline for filing various audit reports for the Previous Year 2024-25 (Assessment Year 2025-26). The due date, which was earlier fixed as September 30, 2025, will now be October 31, 2025. The extension applies to assessees mentioned in clause (a) of Explanation 2 under sub-section (1) of Section 139 of the Income Tax Act, 1961.
Income Tax Audit Report Due Date Pushed for AY 2025-26
In a press release dated September 25, 2025, CBDT stated:
“CBDT extends specified date for filing of various reports of audit for the Assessment Year 2025-26.”
As per the notification, the specified date for submitting audit reports under provisions of the Income Tax Act, 1961, for the Previous Year 2024-25, stands extended to October 31, 2025. The earlier deadline was September 30, 2025.
The Board explained that it had received numerous requests from professional associations, including Chartered Accountants, highlighting difficulties faced in completing audits on time. Heavy floods and natural calamities in several regions disrupted normal business and professional activities, making it harder for tax professionals to meet the earlier deadline. These concerns were also raised before High Courts.
Smooth Functioning of the e-Filing Portal
Despite the extension, CBDT clarified that the Income Tax e-filing portal is functioning without glitches. Tax Audit Reports (TARs) are being uploaded successfully with a stable and reliable system in place.
By September 24, 2025, nearly 4,02,000 audit reports had already been uploaded, including over 60,000 filed in a single day on September 24. Additionally, more than 7.57 crore ITRs were filed by September 23, 2025.
However, taking into account the practical challenges presented by practitioners and submissions made before courts, CBDT decided to extend the deadline by one month.
Tax Experts Welcome the Move
CA Ashish Niraj, Partner at A S N & Company, shared: “Extension of due date for Tax Audits is a very welcome step. This year there was big panic among Tax professionals and Business Entities as Less than 10% Tax Audit reports were submitted till 23rd September, it was almost impossible to upload 90% TAR in last 7 days. 15th September was last date for Individual ITR and once Tax Professionals got free from it, they started Tax Audits. Now the dates are extended they can upload Tax Audit Reports with more accuracy.”
Who Must File Income Tax Audit Report for AY 2025-26?
Chartered Accountant Abhishek Soni, co-founder of Tax2Win, explained that tax audits are covered under Section 44AB. Filing a report is mandatory for:
- Businesses with turnover exceeding ₹1 crore (₹10 crore if cash transactions are 5% or less).
- Professionals with gross receipts over ₹50 lakh.
- Individuals under presumptive taxation (Sections 44AD, 44ADA, 44AE) if they declare lower profits than prescribed, while earning above the basic exemption limit.
Consequences of Missing the October 31, 2025 Deadline
Failing to submit the audit report on time can lead to penalties under Section 271B. The fine may be 0.5% of turnover or gross receipts, with a maximum of ₹1.5 lakh.
Abhishek Soni added: “This penalty is 0.5% of your turnover or gross receipts, capped at Rs 1.5 lakh, unless you can demonstrate a reasonable cause. For instance, a serious illness, natural disaster, or technical glitch. Even if the penalty applies, you can still submit the audit report later, but the risk of penalty remains unless adequately justified to the tax officer.”
