CBDT Extends Tax Audit Report Filing Deadline to October 31 for AY 2025–26

The Central Board of Direct Taxes (CBDT) has announced an extension for the submission of various audit reports under the Income-tax Act, 1961, for the Assessment Year 2025–26. The due date, originally set for September 30, has now been extended to October 31, 2025.

This decision follows multiple representations from professional bodies, including chartered accountant associations, who expressed concerns over the difficulties faced by taxpayers in meeting the audit deadlines.

Income Tax Portal Functionality Remains Stable

Despite these concerns, the Income-tax Department clarified that the e-filing portal has been operating efficiently, with no significant technical issues reported.

As of September 24, 2025, over 4.02 crore Tax Audit Reports (TARs) had been successfully uploaded, including more than 60,000 TARs filed on September 24 alone. Additionally, 7.57 crore Income Tax Returns (ITRs) had been filed up to September 23, 2025.

While the digital infrastructure has remained stable, the CBDT acknowledged the genuine hardships reported by taxpayers and professionals due to factors beyond their control.

Who is Required to Undergo a Tax Audit?

As per Section 44AB of the Income-tax Act:

• Businesses with a total turnover exceeding ₹1 crore must undergo a tax audit.
• However, if cash transactions (receipts/payments) do not exceed 5% of the total, the turnover threshold increases to ₹10 crore.
• Professionals such as doctors, lawyers, architects, and chartered accountants with gross receipts exceeding ₹50 lakh are also subject to audit requirements.
• Certain taxpayers under presumptive taxation schemes such as Section 44ADA, may also require a tax audit if specific conditions are not met.

Also Read: GST 2.0 Effective Today September 22: Check FAQs from GST Rate Reforms Across Sectors

This extension is expected to provide much-needed breathing room for taxpayers and practitioners alike, ensuring compliance without undue pressure amid challenging circumstances.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.