Don’t Miss the October 31 Deadline for Income Tax Audit Reports

Don’t miss the October 31 deadline for filing income tax audit reports. With the extended timeline announced by the Central Board of Direct Taxes (CBDT), businesses and professionals have a final opportunity to complete audits and comply with Section 44AB of the Income-tax Act.

Deadline Extension

The initial deadline for filing audit reports for FY2024–25 was September 30, 2025. CBDT extended it to October 31, 2025, through a notification issued on September 25, citing representations from tax practitioners and court submissions. Missing this date could result in significant penalties.

Who Needs to File Before October 31?

Under Section 44AB, businesses with turnover exceeding ₹1 crore and professionals with receipts above ₹50 lakh must undergo a tax audit. For businesses opting for presumptive taxation under Section 44AD, the threshold is ₹2 crore.

Enhanced limits apply if cash transactions are minimal, up to ₹10 crore turnover if at least 95% of transactions are digital.

Penalties for Missing the Deadline

Failing to meet the October 31 deadline can attract a penalty of 0.5% of turnover or gross receipts, capped at ₹1.5 lakh. This financial impact makes timely compliance critical for all eligible taxpayers.

What Is a Tax Audit?

A tax audit ensures proper maintenance of books of accounts and compliance with the Income Tax Act. Chartered Accountants conduct these audits for businesses and professionals falling under the prescribed thresholds.

Read More: Indian Companies Get Extension for FY25 Tax Filing.

Conclusion

Don’t miss the October 31 deadline for filing income tax audit reports. Timely compliance helps avoid penalties and ensures smooth processing of returns. Businesses and professionals should act now to complete audits and meet CBDT’s extended timeline.

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