The Central Board of Direct Taxes (CBDT) has officially extended the deadline for filing tax audit reports for the financial year 2024-25 (Assessment Year 2025-26) from 30 September 2025 to 31 October 2025. The move aims to provide relief to taxpayers and chartered accountants facing challenges in completing audit reports on time.
The CBDT confirmed the extension via a post on social media platform X, noting that the decision has been taken under Section 139(1), Explanation 2(a) of the Income Tax Act.
Why Was the Deadline Extended?
The extension follows multiple requests from professional bodies, including chartered accountant organizations and the All India Federation of Tax Practitioners (AIFTP). These requests highlighted several difficulties faced by taxpayers and practitioners in completing audit reports by the earlier deadline.
Key reasons cited include:
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Natural disasters: Floods and other calamities in certain regions affected regular business operations.
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Practical challenges: Businesses and professionals reported difficulties in gathering and preparing the required documentation on time.
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Legal appeals: Around 30 writ petitions were filed across various High Courts, requesting an extension of the filing deadline.
High Court Interventions
Several High Courts actively supported the deadline extension:
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The Rajasthan High Court, Jodhpur Bench, instructed the CBDT to extend the filing date from 30 September to 31 October 2025.
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The Karnataka High Court also requested the tax authorities to grant a similar extension, citing practical difficulties faced by taxpayers.
The CBDT acknowledged these legal directions and considered the requests from professional associations while finalizing the new timeline.
Current Status of Tax Audit and ITR Filing
The tax authority also confirmed that the Income Tax e-filing portal is functioning smoothly, with no major technical issues.
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As of 24 September 2025, approximately 4,02,000 tax audit reports have already been uploaded successfully.
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By 23 September 2025, over 7.57 crore Income Tax Returns (ITRs) had been filed for the current assessment year.
The CBDT’s announcement reassures taxpayers that they have sufficient time to complete audits without facing penalties for late submission, provided they file by the extended date of 31 October 2025.
What Taxpayers and Practitioners Should Know
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Applicable Taxpayers: This extension applies to taxpayers required to submit tax audit reports under the Income Tax Act, including professionals and businesses meeting specified turnover criteria.
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Avoid Last-Minute Rush: While the portal is functioning well, experts recommend filing audit reports as early as possible to avoid last-minute technical issues.
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Compliance Requirements: Taxpayers must ensure all audit reports are complete, accurate, and submitted before the 31 October 2025 deadline to avoid penalties under the Income Tax Act.
Conclusion
The CBDT’s decision to extend the tax audit report deadline provides much-needed relief to taxpayers and professionals navigating complex filings. It reflects the board’s flexibility in addressing practical difficulties, natural calamities, and legal interventions. Taxpayers are advised to leverage the additional time effectively, ensuring accurate and timely submissions while avoiding any compliance risks.
