The Central Board of Direct Taxes (CBDT) has extended the deadline for submitting audit reports under the Income-tax Act, 1961, for the Assessment Year (AY) 2025–26. The filing date, initially set for September 30, 2025, has now been moved to October 31, 2025.
Reason for Extension
The extension follows representations from professional bodies, including chartered accountant associations, highlighting the challenges faced by taxpayers and professionals in meeting the earlier deadlines. The CBDT acknowledged these concerns, noting that the extension would provide taxpayers with additional time for compliance.
Income Tax Portal Performance
The Income-tax Department clarified that the e-filing portal has been functioning efficiently, with no major technical issues. As of September 24, 2025:
- Over 4.02 crore Tax Audit Reports (TARs) had been successfully uploaded
- More than 60,000 TARs were filed on September 24 alone
- A total of 7.57 crore Income Tax Returns (ITRs) had been filed up to September 23
Despite stable digital infrastructure, the CBDT recognized the hardships faced by taxpayers and professionals due to external factors, prompting the deadline extension.
Who Must Undergo a Tax Audit?
Under Section 44AB of the Income-tax Act:
- Businesses with total turnover exceeding ₹1 crore must undergo a tax audit. If cash transactions are below 5% of the total, the turnover threshold rises 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 (Section 44ADA) may need an audit if specific conditions are not met.
Summary:
The CBDT’s extension to October 31, 2025, provides much-needed relief for taxpayers and professionals, allowing them to complete tax audit compliance without undue pressure while ensuring adherence to regulatory requirements.