In a significant move aimed at easing compliance pressure, the Central Board of Direct Taxes (CBDT) has extended the deadline for filing income tax audit reports under Section 44AB of the Income Tax Act for the financial year 2024-25. The revised final date is now October 31, 2025, replacing the earlier due date of September 30, 2025.
This extension applies to assessees falling under clause (a) of Explanation 2 to sub-section (1) of Section 139, which broadly includes those required to have their accounts audited under the Act. The step follows interim directions from Rajasthan and Karnataka high courts, which pressed the government to push the deadline amid widespread demand from taxpayers and chartered accountants.
Who Is Eligible / Who Must File?
The obligation to get accounts audited and file a tax audit report hinges on thresholds prescribed under Section 44AB:
- Businesses whose turnover or gross receipts exceed ₹1 crore in a financial year (or ₹10 crore where cash transactions remain under 5 %) are generally required to audit their accounts.
- Professionals whose gross receipts exceed ₹50 lakh are similarly mandated to obtain an audit.
- In some special cases (e.g. non-resident, specified domestic transactions, or if audit is required under other statutes), additional willingness to audit may be triggered.
Those taxpayers must file their audit report before furnishing their income tax return; in practice, the audit report is a prerequisite for preparing and verifying relevant ITR forms (typically ITR-3, ITR-5, ITR-6, etc.).
What Changed — New Deadline & Timeline
Originally, the audit report was due by September 30, 2025. Under the extension, assessees now have until October 31, 2025 to finalize and submit the audit report. The ITR filing deadline for audit-required cases continues to remain October 31, 2025 (unless otherwise notified).
There is no parallel extension currently for non-audit taxpayers, whose ITR due date (for FY 2024-25 / AY 2025-26) was already pushed from July 31 to September 15 (and further to September 16) earlier in the year.
Penalties for Missing the Deadline
Non-compliance with the audit report filing date can lead to significant consequences under Section 271B:
- A penalty of 0.5 % of turnover or gross receipts, subject to a maximum cap of ₹1,50,000.
- If the report is filed late without sufficient cause, deductions claimed may be disallowed, and assessment scrutiny may intensify.
- It is open to the assessing officer to waive or reduce penalty if “reasonable cause” is demonstrated.
Additionally, missing audit deadlines may delay or complicate filing of the corresponding ITR and affect claim of losses or other carry-forward benefits.
Final Thoughts
With the extension now formalised, affected taxpayers and their accounting professionals gain an additional month of breathing space to reconcile accounts, incorporate adjustments, and complete audits. That said, the extension does not remove the need for timely preparation, internal checks, and compliance vigilance.
Stakeholders should be on alert for any further clarifications or notifications, monitor the CBDT website and official releases, and avoid last-minute rushes — even under the extended deadline.
