The Central Board of Direct Taxes (CBDT) has announced a crucial extension for taxpayers by pushing the Income Tax Audit Report due date for the Financial Year (FY) 2024-25 to October 31, 2025. This relief comes after multiple representations from professionals and taxpayers who faced difficulties completing their audits due to recent floods and other natural calamities affecting normal business operations.
What is the Tax Audit Report?
A tax audit report is a detailed verification of a taxpayer’s financial accounts conducted by a Chartered Accountant (CA) under Section 44AB of the Income Tax Act, 1961. It ensures that the income and expenses reported by the taxpayer are accurate and compliant with tax laws. Certain taxpayers, such as companies, large businesses with turnover exceeding thresholds, and professionals, are required to submit this report along with their Income Tax Returns (ITRs).
Key Details About the Extension
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The original deadline for filing the tax audit report for FY 2024-25 was September 30, 2025.
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The CBDT has now extended this deadline by one month to October 31, 2025.
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The Income Tax e-filing portal has remained fully functional during this period, with thousands of reports already submitted.
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The extension was granted following requests citing natural disasters that disrupted business activities in various regions.
This extension aims to ease the compliance burden for affected taxpayers and their auditors while ensuring smooth and timely submission of reports.
Who Must Submit the Tax Audit Report?
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Businesses with an annual turnover exceeding Rs 1 crore (or Rs 10 crore with certain cash transaction limits).
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Professionals with gross receipts above Rs 50 lakh.
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Entities under presumptive taxation schemes who declare profits below prescribed thresholds but whose income exceeds basic exemption limits.
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Taxpayers involved in international transactions requiring transfer pricing audits (with specific deadlines).
These taxpayers must get their accounts audited by a CA and submit the audit report before filing their ITR.
Impact of the Extension
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Taxpayers benefiting from this extension have additional time to finalize audit reports without penalties.
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The Tax Audit Report is mandatory for filing the Income Tax Return; hence, this extension effectively delays the final ITR deadline for audited cases to October 31, 2025.
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Filing beyond this extended deadline may invite penalties and interest charges under Section 234A and 271B of the Income Tax Act.
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Proper and timely audit ensures transparency and reduces the risk of tax notices for discrepancies.
Penalties for Missing the Deadline
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A late filing fee of Rs 1,000 if the total income is up to Rs 5 lakh.
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Rs 5,000 penalty if the income exceeds Rs 5 lakh and the return is filed after the deadline but before December 31.
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Loss of the ability to carry forward losses related to capital gains or business/profession if the return is delayed.
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Interest on outstanding tax dues at 1% per month or part of a month.
Tips to Prepare for Filing the Tax Audit Report
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Engage with a qualified Chartered Accountant early to start the audit process.
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Ensure complete and accurate maintenance of books of accounts and financial records.
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Monitor updates from the Income Tax Department and CBDT regarding audit forms and filing procedures.
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Use the Income Tax e-filing portal for uploading audit reports and filing returns.
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Take advantage of this extension to review financials thoroughly and avoid last-minute errors.
Conclusion
The extension of the Income Tax Audit Report due date for FY 2024-25 to October 31, 2025, brings much-needed relief to taxpayers facing challenges due to natural calamities and professional workload. It is vital for eligible taxpayers to comply with the updated deadlines to avoid penalties and ensure smooth tax filing. Staying informed and prepared can help taxpayers meet all regulatory requirements and maintain good standing with tax authorities.
Timely filing of your tax audit report along with income tax returns is essential to avoid penalties, maintain business credibility, and comply with India’s Income Tax laws.
