Income Tax Audit Due Date Extension 2025 – Latest CBDT Notification & Updates

 Income Tax Audit Due Date Extension 2025 – Latest CBDT Notification & Updates

The central board of direct tax (CBDT) usually issues key announcements during tax season. CBDT provided a relief in late September of 2025 by setting the deadline of the tax audit report of the FY 2024-25 (AY 2025-26). Section 44AB of the Income Tax Act, 1961, requires tax audits when a business or a professional enters the category of business or professionals with a specific number of thresholds. The changes in the due date and the official notification as well as the practical approach to taxpayers is given below.

What is a Tax Audit in the Income tax Act 1961?

Tax audit is an obligatory inspection of accounts that is provided by the section 44AB of the Income Tax Act, 1961. It makes sure that the books of a taxpayer are well kept and income duly reported. Under this rule:

Business threshold: Firms or companies are required to have their accounts audited in case their turnover/gross receipts of 1 crore or above in a financial year (cash transactions of 5% or less of their total receipts/payments) are mentioned.

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Profession threshold: Professionals (doctors, lawyers, consultants, etc.) should be audited in case gross receipts are more than 50 lakh in the year.

Such provisions are to ensure that income and deductions, which are reported in ITRs, are correct. A Chartered Accountant prepares a tax audit report (in form 3CD) which he submits with the tax return. The procedure will guarantee the accuracy and proper maintenance of books of accounts and confirm the information presented to the tax department.

. Concisely, any individual operating a business or profession beyond such thresholds has to undertake a tax audit and seek the audit report of the auditor prior to submission of the ITR.

Modified Tax Audit Due Date AY 2025-26 (FY 2024-25)

In Assessment Year 2025-26 (FY 2024-25), CBDT has increased the deadline of tax audit. Based on the official announcement, the deadline on which numerous audit reports should be submitted has now been changed to 31 October 2025 (it was previously 30 September 2025).

. This is an extension of assessees falling under clause (a) of Explanation 2 to section 139(1) (i.e. those already obliged to file audit report).

New deadline: 31 October 2025 (used to be 30 September 2025)

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Applicability: Assessees that are subject to clause (a) of the Explanation 2 to sub-section (1) of the Income Tax Act.

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It implies that you were eligible to have your business or profession audited according to the audit requirements during the FY 2024-25 now you need to plan to submit the audit report before the end of October. Treat 31 Oct 2025 as the deadline of the firm (subject to further notifications by the CBDT). It was officially granted on 25 Sep 2025 in a press release.

 and included into the tax law through CBDT orders.

CBDT Notification and Circular.

CBDT extended this by an official circular and notification. It started with its Circular No. 14/2025 dated 25 September 2025, United Kingdom, in section 119 of the Income Tax Act. The circular indicates clearly that the specified date in which audit reports are to be provided is not 30 th September 2025 but 31 st October 2025.

. That was based on the representations of CA bodies and other with references to disruptions (e.g. floods) that prevent audits. It was legalized by a corresponding notification (No.149/2025) of 22 Sep 2025.

Major issues originating out of these releases: CBDT admitted that taxpayers and practitioners were experiencing certain issues and explained that despite the fact that the e-filing portal was already operational, they would still come up with a deadline extension as a relief mechanism.

. The new timeline has been confirmed by the official communication (through Income tax department and Press info Bureau). The CBDT press release is available to tax payers on the PIB site and the circular/notification on the Income Tax Department site.

Practical Advice — What the Taxpayers are to Do.

Know the new deadline: Mark 31 Oct 2025 as the date when the audit report should be provided on FY 2024- 25 unless a further extension of the deadline is announced.

Plan early: Collaborate with your auditor to get the accounts, report and electronic signature finished in time before the deadline to prevent any last-minute portal problems.

Document filings: Retain records of filing dates (e-filing confirmation, signed audit report PDFs) to prove that it has been done in time in case of any questions or challenges.

Follow-ups: The watch move: Pay attention to the CBDT/IT Department statements. The ITR return deadline can also change sometimes, however, that needs a different order.

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Planning will help the taxpayers and professionals to upload the audit report without any difficulties and mistakes that happen during rushes.

Penalty for Late Filing

Should you fail to meet the extended deadline there are penalties provided in Section 271B of the Income Tax Act:

Penalty rate: 0.5 of the total turnover or gross receipts of the year, but not exceeding 150,000.

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This fine is less than a half percent of turnover or 1.5 lakh, and is levied at the will of the tax officer. According to the recent media reports, this continues to be the chargeable penalty of late tax audit report.

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Note: In case there is a reasonable cause (e.g. natural calamity, illness) you can justify it to waive the penalty, it is still good to file it as soon as possible.

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Practically, you should have good reason in case you report after 31Oct 2025 otherwise the tax department can impose this penalty in the form of section 271B.

FAQ — Quick Answers

Q: When does the new tax audit become due in FY 2024-25?

The answer to this question is that CBDT has set it at 31 October 2025.

 (extended from 30 Sept 2025).

Q: To whom does this extension apply?

A: It is applicable to assessees referred to in clause (a) of the Explanation 2 to the section 139(1) of the Income Tax Act (i.e. those who are already required to prepare audit reports).

Q: Will the deadline of the ITR filing also change?

A: Not automatically. CBDT releases individual notifications on ITR deadlines. A formal order on the ITR due date should be looked out by the taxpayers. So far, the audit due date is only extended.

Q: What is your discipline on failure to meet the deadline?

A: late audit reports may be brought into focus of a fine under section 271B - normally 0.5% of the turnover or gross receipts (maximum 1.5 lakh)

. This falls under the statutory conditions and the discretion of the officer.

Q: Where am I to get the official notification?

A: Extension is recorded on the site of the Income Tax Department (see Circular No.14/2025) and on the Press Information Bureau press release of 25 Sep 2025.

. These are the official sources that should be consulted at all times.

Conclusion

Overall, the CBDT has re-extended the deadline of tax audit report by the FY 2024-25 (AY 2025-26) to 31 October 2025.

pib.gov.in

. It is a relief to troubled taxpayers and CAs since there have been disruptions in the recent past. The tax professionals are supposed to make respective updates in their compliance calendar, complete the audit work early, and deliver reports before the new due date. Record everything that is being filed and be vigilant of any subsequent official announcements. It is advisable to bookmark the Income Tax Department notifications page and keep an eye on the releases of PIB so to make sure that you do not miss out on any further updates.

In general, considering 31 October 2025 as the deadline that the firm has to work with and plan in advance will help to avert last-minute problems and possible fines in the section 271B.