Tax audit due date extended by CBDT to October 31, 2025

Tax audit due date extended

The Central Board of Direct Taxes (CBDT) has officially extended the specified date for furnishing tax audit reports for the Previous Year 2024-25 (Assessment Year 2025-26) from September 30, 2025, to October 31, 2025.

The decision comes after the CBDT received multiple representations from professional associations, including various chartered accountant bodies, highlighting difficulties faced by taxpayers and practitioners in completing audit reports within the original timeline. The submissions cited disruptions caused by floods and natural calamities in certain regions, which affected normal business operations, as well as practical challenges raised before several High Courts.

The CBDT clarified that the Income-tax e-filing portal has been functioning smoothly without technical glitches, with over 4.02 lakh Tax Audit Reports (TARs) submitted as of September 24, 2025, including more than 60,000 filed on that day alone. Additionally, over 7.57 crore Income Tax Returns have been filed till September 23, 2025.

Despite the system’s stability, the Board acknowledged the representations from practitioners and their arguments made in court, leading to the extension of the furnishing deadline for tax audit reports by one month. The CBDT stated that a formal notification confirming this extension will be issued separately.

On Wednesday the Rajasthan and Karnataka High Courts also granted a one-month extension.

Earlier today the Delhi High Court adjourned the hearing on the tax audit extension plea after the Central Board of Direct Taxes (CBDT) sought additional time to review the recent decisions of the Rajasthan and Karnataka High Courts, which extended the due date for filing tax audit reports till October 30, 2025.

More petitions had been filed across the country seeking extensions for the TAR deadlines.

This move is expected to provide much-needed relief to taxpayers and audit professionals struggling with compressed timelines, enabling smoother compliance and audit quality for the assessment year 2025-26.

Who needs a tax audit?

Under Section 44AB of the Income Tax Act, businesses with turnover above Rs 1 crore must undergo a tax audit. However, the limit is raised to Rs 10 crore if at least 95% of the transactions are digital, part of the government’s push toward a cashless economy.

Freelancers and professionals such as doctors, lawyers, architects, or chartered accountants running private practices also fall under audit requirements if annual income exceeds Rs 50 lakh. Taxpayers under presumptive taxation schemes like Section 44ADA are not entirely exempt either; if they declare profits below the prescribed rate, a tax audit becomes mandatory.