Tax Audit Report Deadline Extended to October 31, 2025, by the Income Tax Department
Introduction
The Income Tax Department has announced a one-month extension for the submission of tax audit reports for the fiscal year 2024-25, shifting the deadline from September 30, 2025, to October 31, 2025. This move follows the Central Board of Direct Taxes (CBDT) receiving representations from professional associations, including chartered accountant bodies, highlighting the challenges faced by taxpayers and practitioners in completing audit reports within the original timeline. The extension aims to provide relief while ensuring that compliance with statutory requirements under the Income-Tax Act, 1961, continues smoothly.
Key Highlights
- New Deadline: Taxpayers and audit professionals now have until October 31, 2025, to submit audit reports for the previous fiscal year (Assessment Year 2025-26).
- Reason for Extension: The extension was prompted by representations citing floods, natural calamities, and other disruptions that have affected normal business operations and the work of audit professionals. These unforeseen circumstances made it difficult for many entities to meet the original deadline.
- High Court References: The matter has also been brought before various High Courts, which reviewed the difficulties faced by taxpayers and audit professionals. Their observations contributed to the CBDT’s decision to extend the deadline.
- ITR Filing Status: Despite these challenges, the Income Tax Return (ITR) filing portal has been functioning smoothly. Over 7.57 crore ITRs had been filed as of September 23, 2025, demonstrating that the portal remains stable and accessible to taxpayers.
- Tax Audit Reports Filed: By September 24, approximately 4.02 lakh tax audit reports had already been uploaded, with over 60,000 reports submitted on that day alone, indicating active engagement from practitioners despite disruptions.
- Portal Functionality: The CBDT confirmed that the e-filing portal is fully operational, capable of handling submissions of statutory forms and audit reports efficiently, without technical glitches.
- Previous Extension: Earlier, on September 15, 2025, the deadline for filing ITRs for individuals and non-audit cases was extended by one day to accommodate minor portal-related issues, reflecting the department’s flexible approach in facilitating compliance.
Conclusion
The extension provides significant relief to taxpayers and audit professionals facing challenges due to natural calamities and other disruptions. It allows additional time for accurate preparation and submission of audit reports while maintaining compliance with statutory obligations. Taxpayers are encouraged to utilise this extended timeline effectively to ensure timely and error-free submissions. The CBDT continues to provide a stable and functional e-filing system, supporting taxpayers and professionals in meeting their statutory responsibilities without undue stress.
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