The Income Tax Department has extended the deadline for submitting tax audit reports for the 2024-25 fiscal year to October 31, 2025. As a result, taxpayers and professionals have been given additional time to comply. The extension was announced by the Central Board of Direct Taxes (CBDT) on Thursday, September 25, 2025, after representations were made by professional associations, including chartered accountant bodies.
Why the Extension Was Announced
Importantly, the CBDT highlighted that several challenges faced by taxpayers and auditors led to the extension. Moreover, floods and natural calamities in parts of the country disrupted normal business operations and made it difficult for many to complete audits on time. Furthermore, taxpayers raised the matter before various High Courts, and the courts recommended relief.
According to CBDT, ‘Keeping in view the representation of tax practitioners and their submissions before the Hon’ble Courts, we have extended the specified date for furnishing the audit report under any provision of the Income-Tax Act, 1961, for the previous year 2024-25 (Assessment Year 2025-26) from September 30, 2025, to October 31, 2025.’
Current Filing Statistics
At present, the income tax e-filing portal operates smoothly, with no major technical glitches. By September 23, taxpayers had already filed more than 7.57 crore income tax returns (ITRs) for FY 2024-25. In addition, they uploaded about 4.02 lakh tax audit reports by September 24, including over 60,000 on that day alone.
Previously, the Income Tax Department extended the ITR filing deadline for non-auditable taxpayers by one day due to minor glitches on the portal, ensuring smooth submission..
Expert Insights
Meanwhile, expert opinions have also been shared. For instance, Amit Bablani, Partner at Deloitte India, explained: “Corporate tax audits faced compressed timelines, overlapping compliance requirements, and system hurdles. Late release of utilities and forms, technical issues on the portal, and disruptions like floods created significant difficulties for auditors and taxpayers alike.”
Understanding Tax Audit
Generally, auditors conduct a tax audit to examine the books of accounts of businesses and professionals and ensure compliance with income tax laws. Unlike statutory or cost audits, tax audits focus on:
- Verifying the accuracy of declared income
- Ensuring proper record-keeping
- Preventing tax evasion
Furthermore, Chartered Accountants submit tax audit reports online using their credentials, and taxpayers must then accept or reject them. If taxpayers reject a report, they must resubmit it until they accept it.
For taxpayers involved in international transactions, the deadline is October 31 of the subsequent assessment year. Similarly, for others, the same date applies for FY 2024-25.
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Penalties for Delay
If tax audit reports are not filed on time, penalties may be imposed under Section 271B of the Income Tax Act. The penalty is calculated as the lesser of:
- 0.5% of total turnover, sales, or gross receipts, or
- ₹1,50,000
However, authorities may allow exemptions if they recognize reasonable causes, such as natural calamities, resignation of auditors, labour strikes, unavailability of accounts, or the death of the partner in charge.
In this regard, Bablani emphasized, “Businesses and professionals must stay updated on provisions and deadlines. Timely filing ensures compliance, avoids penalties, and reduces legal complications.”
Key Takeaways
- New Deadline: October 31, 2025, for FY 2024-25 tax audit reports
- Reason for Extension: Challenges due to natural calamities, system issues, and compressed timelines
- Penalties: 0.5% of turnover or ₹1,50,000, unless reasonable cause exists
- Portal Status: Smooth functioning, stable, and fully operational
Therefore, the CBDT urges taxpayers and auditors to utilize the extended timeline efficiently and file on time to avoid penalties and complications.”
