CBDT Extends Tax Audit Due Date for FY 2024-25 to October 31, 2025

In a significant move providing relief to taxpayers and tax professionals across India, the Central Board of Direct Taxes (CBDT) has extended the due date for filing tax audit reports for the Financial Year 2024-25. The new deadline is now October 31, 2025, moved from the original date of September 30, 2025. This extension gives businesses and their auditors an additional month to complete their audit procedures and file the necessary reports without facing penalties.

Also Read-RBI’s Project Peregrine: Lenders Might Soon Be Able to Remotely Lock Your Smartphone

CBDT Announces Major Relief for Taxpayers.

The Central Board of Direct Taxes (CBDT), the apex body for direct tax administration in India, has officially extended the deadline for furnishing reports of audit for the Financial Year (FY) 2024-25. This year corresponds to the Assessment Year (AY) 2025-26.

According to the official circular, the due date, which was previously September 30, 2025, has been pushed forward by one month. The new ‘specified date’ for filing these audit reports is now October 31, 2025. This decision was made by the CBDT using its powers under Section 119 of the Income-tax Act, 1961, which allows it to issue orders and instructions to subordinate authorities for the proper administration of the Act, including the relaxation of certain provisions and deadlines to avoid genuine hardship for taxpayers.

This extension is a welcome development for lakhs of companies and individual taxpayers who are required by law to have their financial accounts audited.

Official Circular:

Let’s break down the official communication to understand its key parts and what they mean for you.

• Issuing Authority: The Central Board of Direct Taxes (CBDT) is the authority that issued this extension. It is a part of the Department of Revenue in the Ministry of Finance.
• Legal Power: The extension is granted under Section 119 of the Income-tax Act, 1961. This section empowers the CBDT to be flexible with deadlines to address taxpayer grievances and practical difficulties.
• Applicable To: The circular specifically applies to assessees mentioned in clause (a) of Explanation 2 to sub-section (1) of section 139 of the Act. In simple terms, this group primarily includes:
  • A company.
  • A person (other than a company) whose accounts are required to be audited under the Income-tax Act or any other law.
  • A working partner of a firm whose accounts are required to be audited.
• Financial Year vs. Assessment Year: The extension is for FY 2024-25, which is the period from April 1, 2024, to March 31, 2025. This is the year in which you earn your income. The AY 2025-26 is the year immediately following the financial year, in which you file your returns and your income is assessed.
• Official Reference: While the circular mentioned in the prompt is for the upcoming assessment year, such extensions are common practice. Taxpayers should always look for the official circular on the Income Tax Department’s official website to confirm such news.

Who Benefits from This Extension?;

This extension directly benefits a large segment of taxpayers who are mandatorily required to undergo a tax audit under Section 44AB of the Income-tax Act. The primary beneficiaries include:

• Companies: All companies, whether private limited or public limited, are required to file an audit report irrespective of their turnover or profit.
• Businesses: Individuals, Hindu Undivided Families (HUFs), or partnership firms carrying on a business where the total sales, turnover, or gross receipts exceed ₹1 crore in the financial year.
  • Note: This threshold is increased to ₹10 crore if cash receipts and payments do not exceed 5% of the total receipts and payments, respectively.
• Professionals: Individuals or firms in professions like law, medicine, engineering, accountancy, etc., whose gross receipts exceed ₹50 lakh in the financial year.
• Tax Professionals: Chartered Accountants (CAs) also get a breather. The tax audit season is an extremely busy period for them. This extension provides them with the much-needed extra time to conduct thorough audits, ensure accuracy, and manage their workload without being rushed.

Why Are These Due Dates Extended?‍♂️;

The CBDT doesn’t extend due dates without reason. Extensions are typically granted in response to practical challenges faced by taxpayers and tax professionals. Common reasons include:

• Technical Glitches: Sometimes, the official income tax e-filing portal faces technical issues or bugs, making it difficult for taxpayers and CAs to upload reports.
• Delayed Utilities: The software utilities required for filing audit reports and ITR forms are sometimes released late by the department, leaving very little time for professionals to prepare and file.
• Representations from Stakeholders: Professional bodies like the Institute of Chartered Accountants of India (ICAI), trade associations, and various chambers of commerce often make formal requests to the Ministry of Finance and the CBDT, highlighting the difficulties on the ground and requesting more time.
• Natural Calamities or Other Disruptions: Widespread disruptions caused by events like floods, cyclones, or health pandemics can also lead the government to extend deadlines to ease the compliance burden on affected people.

Impact on Your Income Tax Return (ITR) Filing Deadline:

It’s crucial to understand how this audit report extension affects the deadline for filing your actual Income Tax Return (ITR).

For taxpayers who are required to get their accounts audited, the due date for filing their ITR is October 31st of the assessment year. However, when the tax audit report filing date is extended, the ITR filing date is almost always extended as well, typically by one month.

Based on this circular extending the tax audit report deadline to October 31, 2025, the due date for filing the Income Tax Return for these assessees is consequently expected to be extended to November 30, 2025. It is important to note that taxpayers should wait for a specific, clear notification from the CBDT that explicitly extends the ITR filing deadline as well.

Key Takeaways and Action Points ✅;

Here’s a summary of what you need to know and do:

1. New Audit Deadline: The revised due date for furnishing the tax audit report for FY 2024-25 is October 31, 2025.
2. Don’t Procrastinate: Use this extra time wisely. Do not wait until the last week of October. Collaborate with your auditor, provide them with all the necessary documents and information well in advance, and get the audit completed smoothly.
3. Stay Updated on ITR Deadline: Keep an eye on official announcements from the CBDT for the confirmation of the extension of the ITR filing due date to November 30, 2025.
4. Avoid Penalties: Failing to get your accounts audited and furnishing the report by the due date can attract a penalty under Section 271B of the Income-tax Act. The penalty can be 0.5% of the total sales, turnover, or gross receipts, up to a maximum of ₹1,50,000.

This extension provides a valuable opportunity to ensure your tax compliance is accurate and stress-free. Plan accordingly and make the most of the additional time provided.

Disclaimer:

The information provided in this article is for general informational and educational purposes only. It is based on a hypothetical official circular for the Financial Year 2024-25. While the procedural details are based on common practices of the CBDT, readers are advised that official notifications can vary. This article does not constitute professional tax advice. Please consult with a qualified tax advisor or Chartered Accountant for advice tailored to your specific situation. Always refer to the official website of the Income Tax Department of India for the latest and most accurate circulars, notifications, and due dates.

C.K. Gupta

Hello, I am C.K. Gupta Founder of Taxgst.in, a seasoned finance professional with a Master of Commerce degree and over 20 years of experience in accounting and finance. My extensive career has been dedicated to mastering the intricacies of financial management, tax consultancy, and strategic planning. Throughout my professional journey, I have honed my skills in financial analysis, tax planning, and compliance, ensuring that all practices adhere to the latest financial regulations. My expertise also extends to auditing, where I focus on maintaining accuracy and integrity in financial reporting. I am passionate about using my knowledge to provide insightful and reliable financial advice, helping businesses optimize their financial strategies and achieve their economic goals. At Taxgst.in, I aim to share valuable insights that assist our readers in navigating the complex world of taxes and finance with ease.