Tax Audit Due Date – Extension for Filing Income Tax Audit Report for FY 2024-25

The Central Board of Direct Taxes (CBDT) has officially extended the due date for filing income tax audit reports for the financial year (FY) 2024-25. The new deadline is October 31, 2025, replacing the earlier due date of September 30, 2025. This decision was made to address delays in form availability and to accommodate requests from professional bodies like the Institute of Chartered Accountants of India (ICAI). The extension provides additional time for taxpayers and professionals to ensure accurate compliance with tax audit requirements, thereby avoiding penalties.

This extension applies to taxpayers required to file tax audit reports under Section 44AB of the Income Tax Act. With this extra time, businesses and professionals can better manage their compliance processes and avoid last-minute stress. However, it is crucial to utilise the additional time effectively and ensure timely submissions to avoid penalties and legal consequences.

The CBDT's recent order has revised the tax audit due date for FY 2024-25. Below is a summary of the key updates:

• Old deadline: September 30, 2025
• New deadline: October 31, 2025

This extension applies to tax audits filed under Section 44AB of the Income Tax Act, specifically under clause (a) of Explanation 2 to sub-section (1) of Section 139.

Key changes and their significance

The CBDT's decision comes as a response to multiple representations from professional bodies, including ICAI, highlighting challenges faced by taxpayers due to delays in form updates and technical issues. Taxpayers are advised to download the updated forms and complete their submissions well before the extended deadline to avoid penalties.

A tax audit is mandated under Section 44AB of the Income Tax Act for certain categories of taxpayers. Below is a breakdown of eligibility criteria:

Businesses:

1. Tax audit is required if the turnover exceeds Rs. 1 crore in a financial year.
2. For businesses opting for presumptive taxation under Section 44AD, a tax audit is necessary if turnover exceeds Rs. 2 crore.

Professionals:

1. Professionals with gross receipts exceeding Rs. 50 lakh in a financial year are required to file a tax audit report.

Checklist to determine tax audit applicability:

• Is your turnover above Rs. 1 crore (Rs. 2 crore for presumptive taxpayers)?
• Are you a professional with gross receipts exceeding Rs. 50 lakh?
• Are you eligible for presumptive taxation but have declared profits below the prescribed limits?

By answering these questions, taxpayers can determine whether they need to file a tax audit report under Section 44AB.

The extension of the tax audit due date was influenced by several key events and challenges. Below is a timeline of how the decision unfolded:

1. Initial notification: The original deadline for filing tax audit reports for FY 2024-25 was set as September 30, 2025.
2. Technical issues: Taxpayers and professionals faced delays in accessing updated forms on the e-filing portal, along with other system glitches.
3. Representations by ICAI: Professional bodies, including ICAI, submitted requests to the CBDT, citing difficulties in meeting the original deadline.
4. Interim relief: High Courts in various states issued interim orders, urging the CBDT to consider extending the deadline.
5. CBDT press release: On [insert specific date], the CBDT officially announced the extension to October 31, 2025.

This decision aims to reduce compliance burdens while ensuring all taxpayers have adequate time to meet their obligations. However, taxpayers should note that the extension may lead to increased workloads closer to the new deadline, making early preparation essential.

Missing the revised tax audit due date can result in significant penalties and legal consequences under the Income Tax Act. Below are the key repercussions:

• Penalty under Section 271B:
  • 0.5% of turnover or Rs. 1,50,000, whichever is lower.
  • Example: For a business with a turnover of Rs. 2 crore, the penalty could be Rs. 1 lakh.
• Additional consequences:
  • Interest on unpaid taxes as per Section 234A.
  • Increased scrutiny from tax authorities, leading to potential legal complications.

Tips to avoid penalties:

• Start preparing early to avoid last-minute rushes.
• Retain records of any technical issues encountered on the portal (e.g., screenshots).
• Consult your chartered accountant to ensure compliance with all requirements.

Filing a tax audit report requires careful preparation and attention to detail. Follow these steps to ensure a smooth filing process:

1. Gather necessary documents: Collect all financial records, including GST reconciliations, bank statements, and TDS certificates.
2. Prepare Form 3CD schedules: Work with your chartered accountant to ensure all fields are accurately filled.
3. Use updated tools: Download the latest XML-generation tools from the government’s e-filing portal.
4. Log into the e-filing portal: Use your credentials to access the portal and upload the completed tax audit form.
5. Validate and submit: Double-check all details before submitting the form.
6. Download acknowledgment: Save a copy of the acknowledgment receipt for future reference.

Tips for error-free filing:

• Verify all details before submission.
• Allocate time for last-minute corrections.
• Stay updated on any changes to the filing process.

Taxpayers often encounter technical issues while filing tax audit reports on the e-filing portal. Below are common problems and their solutions:

• Validation errors in Form 3CD: Ensure you are using the latest version of the XML-generation tool.
• Pre-filled data mismatches: Verify and correct discrepancies in pre-filled fields.
• Portal slowdowns: Access the portal during non-peak hours to avoid delays.
• Browser compatibility issues: Use a recommended browser and clear your cache before logging in.

If issues persist, document the errors (e.g., take screenshots) and consult the helpdesk for assistance.

To ensure a smooth tax audit process, follow this comprehensive checklist:

Pre-audit:

• Reconcile bank statements.
• Verify GST returns against books of accounts.
• Collect TDS certificates and other relevant documents.

During audit:

• Reconcile taxable income with reported profits.
• Ensure compliance with Section 44AB requirements.

Post-audit:

• Review and finalise Form 3CD.
• Generate and upload the XML file on the e-filing portal.
• Validate submissions and save acknowledgment receipts.

By following this checklist, taxpayers and professionals can avoid errors and ensure timely compliance.

Proper documentation can help taxpayers mitigate penalties and justify delayed filing before the Assessing Officer (AO) or appellate tribunals. When supported by credible evidence, bona fide attempts at compliance are often accepted under administrative discretion, especially in cases of technical or force majeure delays.

Recommended evidence to keep

• Portal screenshots showing upload attempts or error messages with visible timestamps.
• Emails or grievance tickets sent to the Income Tax Department or CPC for technical support.
• CA engagement letters or invoices to establish professional involvement and ongoing effort.
• Local advisories or news reports showing floods, outages, or transport disruptions.
• System error acknowledgements or CBDT circulars noting portal issues.
• Relevant court orders extending deadlines for your category.

Keep all materials stamped/scanned and saved in a chronological folder for at least 6–8 years for future reference.

Income Tax Return (ITR)

• CA bodies (ICAI, CAAS, BCAS, AIFTP) — urged the government to extend the tax audit report (TAR) and income tax return (ITR) filing deadlines, with many suggesting November 30 or later for audit cases. They cited frequent portal glitches, delayed form releases, and new disclosure requirements as key hurdles.
• Chambers of commerce (GCCI, FKCCI, others) — echoed similar requests, pointing to data mismatches in Form 26AS and AIS, as well as lost working days during the festive season that disrupted filing schedules.
• Transfer-pricing and tax advisory firms — sought additional time for Form 3CEB and related transfer-pricing filings, suggesting a January window to prevent cascading compliance burdens.

Pros and cons of extensions:

• Pros: Provide relief to taxpayers and professionals, reduce filing errors, and ensure smoother compliance.
• Cons: Risk of piling up subsequent filings, delayed assessments, and pressure on departmental processing timelines.

Judicial interventions:
Several High Courts (Gujarat, Rajasthan, Karnataka) have stepped in, directing the CBDT to consider extensions or granting interim relief in response to taxpayer petitions.

Next steps to watch

• Potential CBDT notification extending ITR and audit deadlines.
• Clarifications on applicable forms and pre-filled data.
• Further court orders if the CBDT opts for selective or partial extensions.

October is a pressure month for tax professionals and businesses, with multiple statutory deadlines converging. Proper scheduling and internal coordination can help avoid last-minute chaos and penalty exposure.

Key overlapping deadlines

• Tax Audit Reports (Form 3CA/3CB-3CD): Due October 31.
• ITR filing (audit cases): Typically follows audit completion, spilling into early November.
• GST monthly/quarterly returns (GSTR-1, GSTR-3B): Fall within Oct 11–20.
• TDS deposit & filing obligations: Early and mid-October.
• Advance tax (Q2) and Transfer Pricing (Form 3CEB): Ongoing parallel review and sign-off.

Recommended October planning calendar

Staffing & communication tips

• Stagger audits across teams to avoid end-month overload.
• Outsource routine tasks (data entry, reconciliations) early.
• Send client update templates outlining required documents and timelines to ensure timely cooperation.

The CBDT’s extension of the tax audit due date to October 31, 2025, provides a welcome relief for taxpayers and professionals. However, it is essential to utilise this additional time effectively to avoid penalties under Section 271B.

Confirm your eligibility for a tax audit under Section 44AB and start preparing your documents early. Book an appointment with your chartered accountant to ensure timely compliance and avoid last-minute stress. By taking these proactive steps, you can ensure accurate filing and steer clear of penalties or legal complications.