CBDT Announces Audit Date Extension 2025: Big Relief for Taxpayers and Professionals
Today’s income tax due date extension latest news has given a big relief to business owners, professionals and Chartered Accountants. CBDT clarified through an official press release that the due date for tax audit for AY 2025-26, previously being 30 September 2025, has now been extended to 31 October 2025. This extension is particularly beneficial for such taxpayers who were not in a position to file their audit reports in a timely manner owing to floods and natural disasters.
CBDT Audit Date Extension 2025 Official Announcement
The Central Board of Direct Taxes (CBDT) clarified in its press release that the audit due date has been extended by one month in 2025. The previous deadline was September 30th, now extending to October 31st. This audit due date extension applies only to taxpayers who fall under Explanation 2, clause (a) of Section 139(1) of the Income Tax Act, 1961.
According to the CBDT, the portal is running smoothly and there are no technical glitches. As of September 24, 2025, a total of 4.02 lakh Tax Audit Reports (TARs) had been successfully uploaded, and more than 60,000 TARs were submitted on September 24 alone. Additionally, 7.57 crore Income Tax Returns had been filed by September 23.
Why did the Audit Date Extension 2025 become necessary?
The income tax audit due date extension was requested by several professional associations and CA bodies. The reason was that floods and natural calamities in some states severely impacted business and professional work. Several High Courts – including the Rajasthan and Karnataka High Courts – also supported the extension and granted an additional month’s time.
The CBDT also acknowledged the genuine concerns of taxpayers and stated that this decision was taken considering the ground-level difficulties despite the system being stable. The Delhi High Court also adjourned the hearing on this matter, giving the CBDT additional time to review the orders of the state High Courts.
Impact of Audit Last Date 2025 Extension
CA Ashish Niraj, Partner at ASN & Company, said: “This decision is very timely. The last date for individual ITR filing was September 15th, and after that, professionals started tax audits. But uploading 90% of audit reports in just 7 days would have been impossible. Now that the audit last date has been extended to 2025, professionals will be able to upload their reports with greater accuracy.”
This extension is beneficial not only for taxpayers but also for audit quality. Shorter lead times increase the chances of errors, but now having a one-month buffer will streamline the compliance process.
Who Needs to File a Tax Audit for AY 2025-26?
As per Section 44AB of the Income Tax Act, tax audit is necessary for some specific taxpayers. Companies having a turnover of over ₹1 crore must be subject to tax audit. If their cash transactions are less than 5%, this limit is extended to ₹10 crore.
Tax audit is also mandatory for professionals like doctors, lawyers, architects, and chartered accountants if their income is more than ₹50 lakh per annum. Taxpayers under the presumptive taxation scheme (44AD/44ADA/44AE) are not exempted as well. If they declare profits below the prescribed rate and their income exceeds the exemption limit, audit is mandatory for them as well.
What Happens If You Miss the Tax Audit Due Date?
But it should also be kept in mind that if an assessee fails to appear for his tax audit due date for AY 2025-26, then Income Tax Department can levy a penalty under Section 271B. The penalty is 0.5% of the turnover or gross receipts, and it can extend to a maximum of Rs 1.5 lakh.
Chartered Accountant Abhishek Soni, co-founder of Tax2Win, says that the simplest way to avoid penalty is to file your audit report on time. Yes, if a taxpayer has a genuine reason like serious illness, natural calamity or technical issue, then he can avoid the penalty by showing a reasonable reason.
Final Thoughts on Audit Due Date Extension
This move by the CBDT is a practical and balanced decision. Though it brings relief to taxpayers, it also maintains the quality of compliance. The professionals undertaking audits will now be free to carry out their job with better concentration, and taxpayers are less anxious about the risk of unwanted penalties.
It is very evident from this extension of the audit deadline that the government is getting a sense of the woes of taxpayers and is taking supportive actions. Now, all businesses and professionals have until October 31, 2025, to submit their audit reports.
Disclaimer:
This article is for reader informational purposes only. All information provided herein is a general update based on CBDT press releases. Therefore, readers should consult their financial advisor or chartered accountant before making any tax-related decisions.
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