Income Tax Audit Filing Deadline Extended: Taxpayers Get More Time Till October 31

The Income Tax Department has announced a major relief for taxpayers by extending the deadline for filing tax audit reports for the financial year 2024–25. Initially set for September 30, the new due date has now been moved to October 31, 2025, giving individuals and businesses an extra month to complete the process without penalty.

Reason Behind the Extension

The Central Board of Direct Taxes (CBDT) decided to extend the filing deadline in light of recent natural calamities like floods and ongoing technical glitches in the e-filing portal. These challenges had made it difficult for several taxpayers to upload their audit reports on time.

With this extension, affected taxpayers can now prepare and file their audit reports comfortably, ensuring accuracy and compliance without the pressure of the earlier cut-off. The decision aims to prevent unnecessary penalties and legal complications for genuine cases of delay.

Who Needs to File a Tax Audit?

Under the Income Tax Act, a tax audit is mandatory for certain individuals and entities based on their income and turnover.

Here’s a quick overview:

• Businesses with an annual turnover exceeding ₹1 crore (in some cases, the limit may go up to ₹10 crore depending on cash transactions).

• Professionals whose annual gross receipts exceed ₹50 lakh.

The audit must be conducted by a qualified Chartered Accountant (CA), and the report needs to be uploaded on the official income tax e-filing portal along with the taxpayer’s return.

This process ensures that all financial records comply with tax laws, and that income, expenses, and deductions are reported accurately.

Penalties for Missing the Deadline

Failing to file the tax audit report within the prescribed time frame can invite penalties under Section 271B of the Income Tax Act.

The penalty amount can be:

• 0.5% of total sales, turnover, or gross receipts, or

• Up to ₹1.5 lakh, whichever is lower.

Therefore, the department strongly urges taxpayers to utilize this extended timeline wisely and complete the filing before October 31 to avoid such financial repercussions.

How to File the Tax Audit Report

Filing the audit report is entirely online through the Income Tax Department’s e-filing portal. Taxpayers are advised to keep all essential financial documents ready before starting the process, including:

• Bank statements

• Expense records

• Income details and receipts

• Business transaction summaries

The Chartered Accountant prepares and uploads the audit report, after which the taxpayer must accept it digitally on the portal to complete the submission.

The e-filing system is designed to be secure, convenient, and transparent, ensuring a smoother experience for users.

Why This Extension Matters

The extended deadline offers significant relief to taxpayers struggling with technical errors, document verification, or regional disruptions caused by natural disasters. It ensures everyone gets a fair chance to comply with legal obligations without unnecessary stress.

By extending the date to October 31, 2025, the government has demonstrated flexibility and a taxpayer-friendly approach. This move also helps maintain trust and efficiency within the taxation system.

Final Advice for Taxpayers

Taxpayers are advised not to wait until the last minute. Preparing the audit report in advance ensures all financial data is reviewed thoroughly and reduces the risk of discrepancies. Filing early also minimizes the chance of facing last-day portal slowdowns, which are common during peak filing seasons.

With the new deadline in place, taxpayers can now focus on accurate reporting, timely filing, and full compliance — safeguarding themselves from penalties while contributing responsibly to the nation’s tax system.