The Central Board of Direct Taxes (CBDT) has brought big relief to taxpayers by extending the Income Tax Audit Report due date for FY 2024–25 (AY 2025–26) to October 31, 2025, from the earlier deadline of September 30, 2025.
This decision gives professionals, businesses, and auditors additional time to finalize their accounts and upload the audit reports without rushing at the last moment.
What Is an Income Tax Audit and Why Is It Important?
An Income Tax Audit is a mandatory review of a taxpayer’s financial records to ensure accurate reporting of income, expenses, and taxes. It is conducted by a Chartered Accountant (CA) who verifies whether the books of accounts are maintained in compliance with the Income Tax Act, 1961.
After completing the audit, the CA submits an Income Tax Audit Report in Form 3CA/3CB along with Form 3CD through the official Income Tax e-filing portal. This report serves as proof of financial transparency and compliance.
Who Needs to File an Income Tax Audit Report?
The Income Tax Act (Section 44AB) specifies categories of taxpayers who are required to get their accounts audited:
- Businesses:
- If the annual turnover or gross receipts exceed ₹1 crore.
- The limit increases to ₹10 crore if cash transactions (receipts and payments) are 5% or less of total transactions.
- If the annual turnover or gross receipts exceed ₹1 crore.
- Professionals:
- If total gross receipts exceed ₹50 lakh during the financial year.
- If total gross receipts exceed ₹50 lakh during the financial year.
- Presumptive Taxation Cases:
- If taxpayers opting for Sections 44AD, 44ADA, or 44AE declare income lower than the prescribed rate and total income exceeds the basic exemption limit.
Latest Due Date for Filing Income Tax Audit Report (FY 2024–25)
As per the CBDT’s latest notification, the due date for filing the Income Tax Audit Report has been extended to 31st October 2025.
This extension applies to all taxpayers whose accounts are required to be audited under Section 44AB of the Income Tax Act.
Taxpayers involved in international or specified domestic transactions, who need to file a Transfer Pricing Report (Form 3CEB), are expected to have a due date of 30th November 2025.
Why CBDT Extended the Audit Report Due Date
The extension has been introduced considering:
- Ongoing technical issues on the e-filing portal,
- High workload for chartered accountants during audit season, and
- Multiple representations from professional bodies seeking more time for accurate compliance.
This step reflects CBDT’s intent to ensure smooth tax filing and reduced compliance stress for businesses and professionals.
Penalty for Late Filing of Audit Report
If the audit report is not filed by the due date, a penalty under Section 271B may be imposed. The penalty amount can be:
- 0.5% of total sales, turnover, or gross receipts, or
- ₹1,50,000, whichever is lower.
Filing on time helps you avoid penalties and ensures hassle-free processing of your Income Tax Return (ITR).
Key Highlights
- Extended Due Date: 31st October 2025
- Applicable For: Businesses and professionals covered under Section 44AB
- Filing Authority: Chartered Accountant through Income Tax Portal
- Penalty for Delay: Up to ₹1,50,000 or 0.5% of turnover
Final Thoughts
The extension of the Income Tax Audit Report due date to 31st October 2025 provides much-needed breathing space for taxpayers and auditors alike. To avoid penalties and last-minute stress, it’s best to complete the audit process early and ensure accurate filing through your Chartered Accountant.
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