Income Tax Audit Deadline Extension: September 30 Or October 31, What Is Last Date To File Tax Audit Report?

Income Tax Audit Deadline Extension: The Central Board of Direct Taxes (CBDT), on Thursday, changed the last date to file audit reports for the Previous Year 2024-25, Assessment Year 2025-26. The IT audit deadline has now been extended from 30 September to 31 October.

The development has come nearly a day after the Rajasthan High Court directed India's direct tax authority to extend the deadline by a month. Deadline extension will come as a major relief for taxpayers amid reports of Income Tax portal technical glitches, and complaints of inconvenience due to revised reporting formats for non-corporate entities.

The IT audit deadline extension will be applicable to specific assessees as outlined in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Income Tax Act, 1961, stated CBDT in its press release.

CBDT Extends Deadline TO File Income Tax Audit Report

Clarfying the smooth functioning of Income Tax e-filing portal, and successful upload of tax file reports, CBDT, announced that the deadline extension is provided considering issues raised by different representations.

"The Board has received representations fom various professional associations, including Chartered Accountant bodies, highighting certain difficulties being faced by taxpayers and practitoners in timely completion of audit report," stated CBDT in its press release.

"The reasons cited in these representations include disruptions caused by floods and natural calamities in cartain pats of the country, which have impeded normal business 'and professional activity, This matter has also come up before High Courts," it added.

Rajasthan HC Directs CBDT To Extend Income Tax Audit Report Submission Deadline

On Wednesday, Rajasthan High Court bench, comprising Justice Pushpendra Singh Bhati and Jusitice Bipin Gupta, directed CBDT to extend the audit reports submission deadline. The bench was hearing a Public Interest Litigation (PIL) filed by the Tax Bar Association, Bhilwara.

While hearing the petition, the bench recognised that a combination of issues including procedural changes, overlapping timelines, and portal glitches could have created trouble for taxpayers and professionals.

Who Needs to File an Income Tax Audit Report?

Not every taxpayer is required to file an Income Tax Audit Report. As per experts, tax audits are mandatory for businesses with turnover exceeding Rs 1 crore (or Rs 10 crore if cash transactions are ≤5%). Professionals with gross receipts over Rs 50 lakh also need audits. Additionally, those under presumptive taxation must file if their declared profits fall below prescribed limits and their income surpasses the basic exemption threshold.
If taxpayers fail to submit their tax audit report by October 31, 2025, they may face penalties under Section 271B of the Income Tax Act. The penalty is typically calculated at 0.5% of turnover or gross receipts but capped at Rs 1.5 lakh.