Income Tax Audit Due Date Extended 2025 – CBDT Notification & Latest News

The income tax audit due date is one of the most important compliance deadlines for businesses, professionals, and certain individuals under the Income Tax Act, 1961. Every year, the Central Board of Direct Taxes (CBDT) notifies the due date for filing the Tax Audit Report (TAR) and, if necessary, extends the deadline due to various reasons such as technical glitches, natural calamities, or representations from taxpayers and professional associations.

For the Assessment Year (AY) 2025-26, relating to the Financial Year (FY) 2024-25, taxpayers are closely watching updates regarding the tax audit due date extension 2025. With multiple court interventions, CBDT circulars, and industry demands, the audit last date 2025 has been a trending topic among taxpayers and chartered accountants.

This blog provides a complete guide to the Income Tax Audit Due Date Extended, CBDT’s latest notification, and the implications for taxpayers. We will also cover the applicability of tax audit, penalties for missing the deadline, and the historical trend of extensions to give you a well-rounded perspective.

What is a Tax Audit under the Income Tax Act, 1961?

A tax audit is an examination of the accounts of a taxpayer by a Chartered Accountant (CA) to ensure compliance with the provisions of the Income Tax Act, 1961. The primary objective of a tax audit is to verify:

Accuracy of income, expenses, and deductions reported by the taxpayer.
Compliance with accounting standards and tax laws.
Correctness of claims such as depreciation, deductions, and exemptions.
Proper maintenance of books of accounts by the assessee.

The audit report is furnished in Form 3CA/3CB along with Form 3CD on the Income Tax e-filing portal. This report is mandatory for certain categories of taxpayers, depending on their turnover, profession, or income reporting method.

Applicability of Tax Audit – Who Needs to File?

Not every taxpayer in India needs a tax audit. The Income Tax Act specifies the applicability under Section 44AB:

1. Businesses

If the total turnover or gross receipts exceed ₹1 crore in a financial year, tax audit is mandatory.
For businesses opting for presumptive taxation under Section 44AD, if turnover exceeds ₹2 crore, tax audit applies.
If a business under Section 44AD declares profits less than 6%/8% (depending on digital or cash transactions), and total income exceeds the basic exemption limit, tax audit is required.

2. Professionals

For professionals (such as doctors, lawyers, architects, consultants, CAs, engineers, etc.), if gross receipts exceed ₹50 lakhs, tax audit is applicable.

3. Other Cases

Taxpayers under presumptive schemes (Section 44AE, 44BB, 44BBB) declaring income below prescribed limits.
Cases where profit declared is below deemed profit levels under special provisions.

Tax Audit Due Date for AY 2025-26 (FY 2024-25)

The due dates for furnishing the tax audit report are prescribed under the Income Tax Act. For AY 2025-26, the due dates are as follows:

30th September 2025 → For assessees required to get accounts audited under Section 44AB (general taxpayers).
31st October 2025 → For assessees who must also furnish a Transfer Pricing Report (Form 3CEB).

These due dates are critical because the Income Tax Return (ITR) due date for audited cases is linked to the completion of the audit report filing. In other words, taxpayers cannot submit their ITR unless the audit report is uploaded first.

CBDT Notifications and Latest News on Tax Audit Due Date Extension 2025

The Central Board of Direct Taxes (CBDT) is the authority responsible for prescribing and extending tax-related deadlines in India. For AY 2025-26 (FY 2024-25), the CBDT issued a notification on 25th September 2025, extending the tax audit due date from 30th September 2025 to 31st October 2025.

This decision was taken after:

Multiple representations from professional associations such as ICAI (Institute of Chartered Accountants of India).
Court interventions (Rajasthan High Court and Karnataka High Court directed the government to extend the deadline).
Practical challenges faced by taxpayers, including natural calamities in certain regions.

Key Point: As per CBDT’s latest notification, the income tax audit last date 2025 is 31st October 2025 for most taxpayers.

Reasons for Tax Audit Due Date Extensions

Historically, the tax audit due date has been extended multiple times due to:

Year	Original Due Date	Extended Due Date	Reason for Extension
AY 2020-21	30 Sept 2020	31 Oct 2020 & 31 Dec 2020	COVID-19 pandemic & lockdown
AY 2021-22	30 Sept 2021	15 Jan 2022	COVID-19 & portal glitches
AY 2022-23	30 Sept 2022	07 Oct 2022	Technical issues on e-filing portal
AY 2023-24	30 Sept 2023	31 Oct 2023	Court intervention (Rajasthan HC)
AY 2024-25	30 Sept 2024	31 Oct 2024	Heavy representations by professionals
AY 2025-26	30 Sept 2025	31 Oct 2025	Court directions & taxpayer difficulties

The pattern clearly shows that extensions have become a regular feature, especially since the pandemic era.

Role of Courts and Professional Bodies

1. Court Interventions

The Rajasthan High Court (Jodhpur Bench) and the Karnataka High Court have, in multiple years, directed CBDT to extend the tax audit due date.
These courts considered the difficulties faced by taxpayers and professionals due to compliance overload and practical challenges.

2. Professional Associations

ICAI, being the apex body of chartered accountants, has consistently written to CBDT seeking extensions.
Their representations highlight workload pressure, portal inefficiencies, and overlapping GST/tax deadlines.

This shows that judicial and professional pressure often influences CBDT’s decision to extend the audit date.

Why Tax Audit Due Date Extensions Matter

Taxpayer Relief – Businesses and professionals get additional time to compile and file accurate data.
Reduced Errors – Extensions ensure quality reporting and reduce the risk of penalties due to last-minute mistakes.
Compliance Management – Overlapping deadlines like GST returns, TDS/TCS filing, and advance tax payments create a burden; an extension helps smoothen the process.
Technology Concerns – With lakhs of tax audit reports being uploaded on the portal, extra time reduces server load and filing glitches.

Step-by-Step Process for Filing Tax Audit Report

Filing a Tax Audit Report (TAR) is a mandatory compliance for eligible taxpayers. Here’s a simple guide to ensure smooth filing:

Step 1: Appointment of Chartered Accountant

The assessee must formally appoint a Chartered Accountant (CA) on the Income Tax e-filing portal.
The CA must accept the appointment request before proceeding.

Step 2: Preparation of Audit Report

The CA prepares the audit report in Form 3CA/3CB and the detailed statement in Form 3CD.
These forms capture information about income, expenses, depreciation, deductions, compliance with TDS, GST linkage, etc.

Step 3: Upload on e-Filing Portal

The CA logs into the Income Tax e-filing portal, uploads the signed audit report, and submits it electronically.
Digital signature of the CA is mandatory.

Step 4: Assessee Approval

Once uploaded, the assessee must log in to their account and approve the audit report.
Only after approval is the report considered validly filed.

Tip: File early to avoid last-minute portal errors, especially near the tax audit last date 2025.

Penalties and Consequences of Missing Tax Audit Due Date

Missing the tax audit due date extension FY 2024-25 can have serious consequences:

Penalty under Section 271B
- The penalty is 0.5% of turnover or gross receipts, subject to a maximum of ₹1,50,000.
Disallowances and Scrutiny
- Failure to furnish audit report may invite income tax scrutiny and disallowances of expenses.
Delayed ITR Filing
- Since ITR filing in audit cases is linked to TAR submission, delay in audit automatically delays return filing.
Loss of Carry Forward Benefits
- Missing the deadline may affect the ability to carry forward certain losses (like business losses).

Tips to Avoid Last-Minute Issues

Start Early – Don’t wait until September; initiate audit process by July or August.
Organize Documents – Maintain books, bank statements, GST returns, TDS certificates in order.
Check Portal Functionality – Regularly log in to the Income Tax e-filing portal and update contact details.
Communicate with CA – Keep your Chartered Accountant updated with business data to avoid delays.
Track CBDT Notifications – Stay informed about CBDT latest news for any extension updates.

Historical Timeline of Tax Audit Due Date Extensions

Over the years, CBDT extensions have become quite common due to technical glitches, COVID-19, and representations from taxpayers. Below is a quick historical view of tax audit due date extensions in India:

Assessment Year	Original Due Date	Extended Due Date	Reason for Extension
AY 2020-21	30 Sept 2020	31 Oct 2020 & 31 Dec 2020	COVID-19 lockdown & disruptions
AY 2021-22	30 Sept 2021	15 Jan 2022	COVID-19 & new e-filing portal glitches
AY 2022-23	30 Sept 2022	07 Oct 2022	Technical errors & professional demands
AY 2023-24	30 Sept 2023	31 Oct 2023	Rajasthan High Court intervention
AY 2024-25	30 Sept 2024	31 Oct 2024	Heavy professional representations
AY 2025-26	30 Sept 2025	31 Oct 2025	Court orders & CBDT notification

This timeline helps taxpayers see that extensions are not unusual, but they cannot be assumed unless CBDT officially notifies them.

Conclusion: Advance Tax Payment Made Easy and Important for You

The Income Tax Audit Due Date Extended 2025 has brought much-needed relief to taxpayers and professionals. With the CBDT notification officially moving the audit last date 2025 to 31st October 2025, businesses and professionals have gained an extra month to complete compliance.

However, taxpayers should not rely on the possibility of further extensions. Missing the tax audit due date FY 2024-25 may result in penalties, disallowances, and compliance difficulties. The best approach is to: