Tax-Audit Report Deadline Extended to 31 Oct 2025 by CBDT

The Central Board of Direct Taxes (CBDT) has officially extended the due date for filing the Income Tax Audit Report under Section 44AB of the Income-tax Act, 1961. For the financial year 2024-25 (assessment year 2025-26), the new deadline is October 31, 2025, instead of the earlier September 30, 2025.

This extension applies to taxpayers and businesses whose accounts are required to be audited under the Income Tax Act — including companies, partnership firms, and professionals exceeding the prescribed turnover or gross receipts limit. The move aims to ease the pressure on accountants and tax professionals grappling with reporting complexities and portal slowdowns.

The CBDT’s decision follows several representations from industry bodies and professional associations citing technical glitches on the e-filing portal and the increased compliance burden due to new reporting standards. By extending the deadline, the government seeks to balance accuracy with administrative convenience.

However, experts caution that while the audit report due date has been pushed to October 31, the due date for filing the Income Tax Return (ITR) for audit cases remains unchanged as of now. Unless a further notification is issued, taxpayers must still plan to complete their ITR filing promptly after submitting the audit report.

Failure to comply with the tax audit deadline may attract penalties under Section 271B of the Act. The fine can be up to ₹1.5 lakh or 0.5% of total sales, turnover, or gross receipts—whichever is lower. Hence, businesses are advised to treat the extension as a grace period, not a delay opportunity.

In summary, the extended deadline offers temporary relief but also reinforces the importance of early preparation. Chartered accountants and business owners should finalize audits well before the deadline to avoid last-minute disruptions and ensure smooth compliance.