Rajasthan High Court extends due date for tax audit to October 31: Is similar notification expected across India? Tax expert clarifies

If your business turnover is above Rs 1 crore, you are required tax audit. But the limit is stretched to Rs 10 crore, provided at least 95 percent of the transactions are digital. This is the government’s way of pushing people towards cashless transactions.

The Rajasthan High Court has granted a one-month extension for filing the Tax Audit Report. A division bench comprising Justice Pushpendra Singh Bhati and Justice Bipin Gupta extended the due date under Section 44AB of the Income Tax Act, 1961, beyond September 30, 2025. The court noted submissions that in previous years, the CBDT had also allowed similar extensions.

The Rajasthan High Court's Jodhpur Bench has issued an interim order in response to a writ petition filed by the Tax Bar Association Jodhpur. Similar petitions have been filed across the country.

"We are pleased to inform you that the Hon’ble Rajasthan High Court has extended due date for filing of Tax Audit Reports from 30th September to 31st October. Ably represented Sr. Adv. Vikas Balia and Adv. Prateek Gattani. TAX BAR ASSOCIATION JODHPUR v/s UOI [CW 18593/2025]," posted Jodhpur Tax Bar Association on X.

What are its implications?

"As the order is of Rajasthan High Court therefore it will apply in Rajasthan only (that too if appeal or a Review Petition isn't filed by CBDT in Supreme Court). We are awaiting pan India CBDT notification," said Himank Singla - founding partner, SBHS Associates.

Recognising the persistent technical glitches on the filing portal and the backlog resulting from a large number of pending tax returns, the Court has directed to extend the due date for filing the tax audit report (TAR).

The next hearing in the case has been scheduled for October 27, 2025, by which time further directions may be passed based on the progress and notifications issued.

Tax audit requirements under Section 44AB of the Income Tax act

If your business turnover is above Rs 1 crore, you are required tax audit. But the limit is stretched to Rs 10 crore, provided at least 95 percent of the transactions are digital. This is the government’s way of pushing people towards cashless transactions.

If you’re a freelancer or a professional like doctors, lawyers, architects, or even CAs with private practices and your annual income exceeds Rs 50 lakh, you need a tax audit too.

Even people under the presumptive taxation schemes like 44ADA aren’t completely free. If they declare profits lower than the prescribed rate, a tax audit is mandatory.

The deadline for tax audit is September 30, 2025. If one misses it there is a penalty of 0.5 percent of the turnover or Rs 1.5 lakh, whichever is lower.