In a welcome relief to taxpayers, the Central Board of Direct Taxes (CBDT) has officially extended the deadline for filing income tax audit reports for the Financial Year 2024–25 (Assessment Year 2025–26), moving the due date from 30 September 2025 to 31 October 2025.
This extension, announced on 25 September 2025, is aimed at easing compliance pressure on businesses, professionals, and Chartered Accountants (CAs) who had raised concerns about tight timelines, portal constraints, and extenuating circumstances such as natural calamities in some regions.
Below is a detailed breakdown of what this extension means, who it applies to, potential implications, and things you should watch out for in the days ahead.
What Exactly Has Changed?
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The deadline for furnishing the audit report under any provision of the Income-tax Act, 1961, for the Previous Year 2024–25 (Assessment Year 2025–26), has been extended from 30 September 2025 to 31 October 2025 for certain taxpayers.
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The extension specifically applies to taxpayers referred to in clause (a) of Explanation 2 to sub‑section (1) of section 139 of the Income-tax Act.
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The decision was taken after multiple representations by professional bodies (such as CA associations) and stakeholders pointing to difficulties in meeting the prior deadline.
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CBDT clarified that while the Income Tax e‑filing portal is functioning smoothly and many audit reports were already filed (over 4.02 lakh Tax Audit Reports by 24 September 2025), the extension was granted in view of real‑world practical challenges.
Thus, taxpayers and their auditors now have an extra month to prepare and submit the necessary audit reports.
Why Was the Extension Needed?
Several reasons factored into the decision to grant an extension:
Practical constraints faced by practitioners
Many chartered accountants and audit firms submitted representations highlighting that the tight window between other statutory deadlines and audit timelines made it very challenging to complete audits, especially for complex accounts.
Natural calamities and disruptions
Reports indicate that flooding and other natural disasters in various parts of the country hindered business operations in those regions, making audits and field verifications difficult.
Judicial orders and high court interventions
Before the extension, Rajasthan High Court (Jodhpur Bench) and Karnataka High Court had issued interim directions or relief to extend the audit submission deadline, in response to petitions from tax professionals and associations.
Workload accumulation
As of late September, only a fraction of tax audit reports had been filed — leaving a huge backlog to be addressed in a short span. The extension gives breathing space to clear this backlog without forced errors.
Maintaining fairness and compliance quality
The CBDT wanted to ensure that taxpayers and professionals were not penalized unfairly for delays arising from systemic or external constraints, while still keeping statutory discipline intact.
Who Is Affected? Who Can Use This Extension?
Not every taxpayer will benefit. The extension applies only to taxpayers specified under clause (a) of Explanation 2 to sub‑section (1) of section 139.
Who is required to file a tax audit report?
Under Section 44AB of the Income-tax Act, the obligation to furnish an audit report kicks in for:
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Businesses whose turnover exceeds ₹1 crore (or up to ₹10 crore if cash transactions are limited)
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Professionals whose gross receipts exceed ₹50 lakh
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Taxpayers under presumptive taxation (Sections 44AD, 44ADA, 44AE), if the declared profits are lower than prescribed limits, and their total income (before deductions) exceeds the basic exemption limit.
Additionally, the forms commonly involved include Form 3CA / 3CB (audit report by auditor) and Form 3CD (detailed statement).
So, if you fall into these categories, the new deadline of 31 October 2025 now applies to you.
What Doesn’t Change — Key Caveats
ITR filing deadline not extended (yet)
The extension of the tax audit report date does not automatically extend the due date for filing the Income Tax Return (ITR) for those under audit. As on now, the ITR deadline remains 31 October 2025, unless CBDT issues a separate notification.
Legal experts have noted that if a change to ITR deadline is intended, a fresh notification will be required.
Penalty risk if not filed even after extension
Even with the extension, late filing of audit reports may attract penalty under Section 271B, which can be up to 0.5% of the turnover or gross receipts, subject to a maximum of ₹1,50,000, in discretion of the assessing officer.
Forms and compliance requirements unchanged
All the reporting requirements, disclosures, and forms (3CA / 3CB / 3CD) remain in force. The extension does not waive or alter any compliance norms or schedules.
Only ‘specified date’ extended for audit report
The amendment refers to extension of the “specified date” to furnish the audit report under relevant provisions. It does not change other linked deadlines unless explicitly notified.
What You Should Do Now: Practical Steps & Advice
If you are affected by this extension, here are some steps you should take:
Confirm applicability to your case
Check whether your business, profession, or turnover falls under the categories that require audit under Section 44AB. If yes, benefit from this extension.
Re-plan your audit timeline
You now have an extra month. Reorganize your audit schedule and field work accordingly, allowing buffer time for checking, revisions, and finalization.
Liaise with your Chartered Accountant / auditor
Ensure your auditor is aware of the extended date and coordinate deliverables (books, statements, reconciliation) sooner, to avoid last‑minute delays.
Monitor announcements for ITR extension
Although no formal extension of ITR deadline has been announced yet, stay alert for circulars or press releases from CBDT that may modify this.
File before the extended deadline
Even though the date is now 31 October, do not push till the last minute — system traffic, connectivity issues, or final corrections may create difficulties. Early filing ensures safety.
Keep documentation ready
Maintain audits, working papers, reconciliations, and backup documentation properly. In case any query or scrutiny arises, having organized documentation helps.
Implications & Reactions in the Professional Community
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Relief to CA / audit professionals
Many chartered accountants and audit firms had voiced concerns that the original deadline result in rushed audits, higher errors, and penalty risks. The extension has been welcomed as a balancing move. -
Reduced litigation risk
With High Courts already intervening (Rajasthan HC, Karnataka HC), the extension may help diffuse legal pressure and reduce burden on judiciary. -
Better compliance quality
More time allows for careful scrutiny, corrections, and accuracy, improving the overall quality of audit reports filed. -
Call for further extensions
Some observers and professionals believe that this extension may be just the first step, and more relief (especially to ITR filing or transfer pricing deadlines) might follow.
Frequently Asked Questions (FAQs)
Q1. What is the new extended deadline for tax audit report submission?
A1. 31 October 2025 (extended from 30 September 2025).
Q2. When was the extension announced?
A2. On 25 September 2025, via a CBDT press release.
Q3. Who is eligible for this extension?
A3. Taxpayers referred to in clause (a) of Explanation 2 to sub‑section (1) of section 139 of the Income Tax Act. Also those required to file audit reports under Section 44AB.
Q4. Does this extension also apply to ITR filing for those under audit?
A4. No, as of now the ITR filing due date for those under audit remains 31 October 2025. Any change would require a separate CBDT notification.
Q5. What happens if audit report is submitted after October 31, 2025?
A5. A penalty under Section 271B may be imposed, up to 0.5% of turnover or gross receipts, subject to a maximum of ₹1,50,000.
Q6. Why was the extension granted?
A6. Due to practical difficulties cited by CAs and taxpayers, disruptions caused by floods or calamities in some areas, and judicial directions from High Courts.
Conclusion
The CBDT’s decision on 25 September 2025 to extend the tax audit report submission deadline to 31 October 2025 is a significant relief to taxpayers and accounting professionals. It acknowledges the constraints faced during the audit season and provides necessary breathing room.
However, this extension is not a blanket waiver — it applies only to certain taxpayers and does not automatically extend the ITR filing deadline. Anyone subject to audit under Section 44AB should act prudently: replan work, stay updated with CBDT announcements, and aim for timely submission.
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